Feed-in Tariff: Draft guidance for renewable installations (Version 5) · Feed-in Tariff: Draft...

Ofgem/Ofgem E-Serve 9 Millbank, London SW1P 3GE www.ofgem.gov.uk

Promoting choice and value

for all gas and electricity customers

Feed-in Tariff: Draft guidance for renewable

installations (Version 5)

Draft Guidance

Reference: 160/12 Contact: Renewables & CHP team

Publication date: 30 November 2012 Team: Environmental Programmes

Effective from: 1 December 2012 Tel: 020 7901 7310

Email: [email protected]

Overview:

This is draft guidance for renewable generators that want to benefit from the

Government‟s Feed-in Tariff (FIT) scheme. It provides an overview of the scheme‟s

eligibility criteria and explains the process of seeking accreditation or preliminary

accreditation.

The purpose of providing this guidance in draft is to seek views on the

changes we are proposing to make to it. Responses should be made in

writing by Monday 11 February 2013. Further detail on the scope and

purpose can be found in Appendix 5.

The document supersedes the Feed-in Tariff: Guidance for renewable installations

(Version 4) and takes in to account amendments to the FIT legislation following the

Comprehensive Review Phase 2B. We have also made some other minor

amendments to provide greater clarity on aspects of the FIT scheme administration.

This guidance is not intended to be a definitive technical or legal guide to the FIT

scheme.

mailto:[email protected]

Feed-in Tariff: Draft Guidance for renewable installations (Version 5)

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Context

The Government aims to increase the contribution renewable energy will make to

energy supplies in the UK, with it playing a key role in the wider climate change

programme.

The FIT scheme is intended to encourage the uptake of small scale renewable

and low-carbon technologies up to a total installed capacity (TIC) of 5MW located

in England, Wales and Scotland. The FIT scheme creates an obligation for certain

Licensed Electricity Suppliers to make tariff payments for the generation and

export of renewable and low carbon electricity. Installations using solar

photovoltaic (PV), wind, hydro, anaerobic digestion (AD) technologies up to 5MW

and fossil fuel derived Combined Heat and Power (CHP) up to 2kW or

“microCHP”, (up to a maximum of 30,000 Eligible Installations) can receive FIT

payments, providing all eligibility requirements are met.

The FIT scheme replaces the Renewables Obligation (RO) as the main mechanism

of support for PV, wind and hydro installations with a declared net capacity (DNC)

of 50kW or less ('micro installations'). The scheme also provides eligible small

scale generators with a DNC over 50kW to 5MW ('small installations') the one-off

choice of applying under the FIT or the RO.

A FIT scheme was not introduced in Northern Ireland. Instead, additional

incentives were put into place via a change to the Northern Ireland Renewables

Obligation (NIRO) Order for generating stations of certain technologies and

installed capacities.

The FIT scheme was introduced by the Department of Energy and Climate

Change (DECC) in April 2010 and is administered by the Gas and Electricity

Markets Authority (the Authority), whose day to day functions are performed by

Ofgem.1

Associated documents

The Feed-In Tariffs (Specified Maximum Capacity and Functions) Order 2010

The Feed-In Tariffs Order 2012

Schedule A to Standard Licence Condition 33

Renewables Obligation Order 2009

Feed-in Tariff Scheme: Guidance for Licensed Electricity Suppliers

Renewables Obligation: Guidance for generators (May 2011)

1 Ofgem is the office of GEMA and „the Authority‟, „Ofgem‟ & „GEMA‟ are used interchangeably in this document


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Renewables and CHP Register User Guide (April 2008)

Feed-in Tariff: “Generating equipment” consultation (July 2011)

Feed-in Tariff: Draft Guidance for Community Energy and School Installations2

2 The new guidance document has been drafted following the July 2012 Government Response to Phase

2B of the Feed-in tariff Comprehensive Review. Information on the response and related documents can be found at: http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_review/fits_review.aspx

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=13&refer=Sustainability/Environment/RCHPreg

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_review/fits_review.aspx

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_review/fits_review.aspx


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Contents

Executive Summary 6

1. Introduction 9 Role of Ofgem in the FIT 10

Queries 10 Previous changes to the FIT legislation 11 Changes to the FIT Order (December 2012) 11 This document 12

2. Eligibility for the FIT scheme 14 Definitions of "Eligible Installation" and "Site" 14

Eligible Installation 14 Defining "Site" 15

Specified maximum capacity 16 Definition of TIC and DNC 17

De-rating or altering an installation to cap its generating capacity 17 Definition of “Commissioned” 17 Metering 19

Metering requirements 19 Use of previously accredited equipment 20 Installations which are selling or have sold electricity under a NFFO or SRO

contract 20 Hydro installations and pumped storage 20 Installations in receipt of a grant from public funds 21

Table 1: Examples of costs not associated with an installation 21 Permitted grants under 2010 FIT Order 24 Compliance with a de minimis aid commission regulation 24 Grants that do not meet the exemptions 25

Modifications: extensions and reductions 25 Definition of extension 25 Definition of reduction 26 Meter readings and pro-rating 27 Exceeding the specified maximum capacity 27 Energy efficiency requirements (PV only) 27 Community Energy Installations and School Installations 30 Multi-installation tariffs (PV only) 31 The effect of energy efficiency and multi-installation on tariff rates 34

3. Preliminary Accreditation 36 What is Preliminary Accreditation? 36

What the FIT Order says 36 How to apply for preliminary accreditation 36 Prerequisite documentation 37

Planning permission 37 Grid connection agreement 38 Hydro Generating Station licenses and consents 38

Granting preliminary accreditation 39 The guaranteed tariff 39

Converting preliminary accreditation to full accreditation 40 Invalidating preliminary accreditation 41


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4. Accreditation for FIT 42 What the FIT Order says 42 How to apply for accreditation 42 The "Eligibility Date" 43 Confirming accreditation 44 Accreditation number 45

Technology codes 45 Appointing a FIT Licensee 46

Table 4: Mandatory and voluntary FIT Licensees 46 Statement of FIT terms 47 Switching FIT Licensee 50 FIT payments 51 Reducing, recouping and withholding FIT Payments 52 Suspension and removal from the Central FIT Register 52

Appendices 54

Appendix 1 - Glossary 55

Appendix 2 -Solar PV (declarations for new installations and extensions) 58

Appendix 3 -Solar PV declaration (change to the FIT generator or nominated recipient) 64

Appendix 4 - Degression 67

Appendix 5 - Feedback 74


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Executive Summary

Purpose of this document

The purpose of this document is to engage with stakeholders on the changes we

are proposing to make to the guidance document compared to Version 4 of the

document. It is also a „live‟ document which should be used as guidance until a

final version 5 is published.

We are making changes to the guidance document for two reasons. Firstly this

guidance has been amended to take account of recent amendments to the

Standard Licence Conditions and the FIT Order, which had the effect of

implementing the outcomes of the FIT Comprehensive Review 2B. These changes

include:

updates to the definitions of „Site‟, „Commissioned‟ and „Hydro Generating

Station‟ (see chapter 2)

the process for preliminary accreditation for all ROO-FIT installations (see

chapter 3) and new provisions for community energy installations and school

installations (see chapter 3)

the degression mechanism for non-PV technologies has also been included in

this document (see appendix 4)

Secondly, some amendments to this guidance have also been undertaken to

provide further information on existing aspects of the scheme. Specifically, the

energy efficiency requirement and multi-installation tariff sections (chapter 3)

have been revised in their entirety to clarify how these requirements work.

For these changes we would like to seek feedback on the clarity and the level of

detail provided in the guidance. Please see Appendix 5 for more detail on the

scope and purpose of this document.

Any responses should be made in writing by Monday 11 February 2013. They

should be sent to Andrew MacFaul, Consultation Co-ordinator, at Ofgem, 9

Millbank, London, SW1P 3GE or by email to [email protected]

The Feed-in Tariff: Guidance for Licensed Electricity Suppliers and Feed-in tariff:

Guidance for community energy and school installations (and associated

templates) will shortly be published separately for consultation.

What is the Feed-in Tariff scheme (FIT)?

The FIT scheme is a Government programme designed to promote the uptake of

a range of small-scale renewable and low-carbon electricity generation

technologies.



7

The scheme requires certain Licensed Electricity Suppliers (FIT Licensees) to pay

a generation tariff to small-scale low-carbon generators for electricity generated.

An export tariff is also payable where electricity is exported to the transmission

or distribution network.

The scheme is applicable to a range of technologies up to a maximum total

installed capacity of 5MW.

Article 31 of the FIT Order sets out that the Authority may publish procedural

guidance for various scheme participants in connection with the administration of

the FIT scheme.

The purpose of this document is to provide guidance to existing or prospective

FIT Generators and to set out Ofgem's procedures for implementing the

accreditation provisions under FIT legislation. Specifically, this document

discusses the ROO-FIT accreditation and preliminary accreditation processes. It

also discusses eligibility for solar PV and wind installations with a DNC over 50kW

up to 5MW, and all AD and hydro installations with a capacity up to 5MW.

How to apply for the scheme: five steps to receiving FIT payments

Step 1 - Check whether you are using an eligible technology

If your installation generates renewable electricity using solar PV, wind, hydro or

AD and has a Total Installed Capacity (TIC) of up to 5MW or is a fossil fuel

derived CHP with a TIC up to 2kW, you may be able to receive FIT payments.

Step 2 - Make an application for accreditation

Applications for accreditation are made through one of two routes:

Customers using solar PV or wind with a Declared Net Capacity (DNC) up

to 50kW, or CHP up to a TIC of 2kW (“microCHP”), need to ensure they use

Microgeneration Certification Scheme (MCS) certified equipment installed by

an MCS certified installer. Applicants should approach their electricity supplier

for accreditation.

Solar PV and wind installations with a DNC over 50kW up to a TIC of 5MW and

AD or hydro installations of any capacity up to 5MW should apply to Ofgem

for ROO-FIT accreditation. Such applications should be made to us via a

generator account set up on our Renewables and CHP Register3 (the

Register). More detail on ROO-FIT accreditation is available in Chapter 4 of

this document.

Step 3 - Agree a Statement of FIT Terms4 with your supplier

Step 4 - Provide meter readings to your supplier who will make FIT payments

3 https://www.renewablesandchp.ofgem.gov.uk/ 4See Chapter 4 for more information


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Step 5 - Need more advice?

The initial point of contact for anyone wanting to find out more about electricity

generation and how they can join the scheme should contact the Energy Saving

Advice Service in England and Wales (www.direct.gov.uk/savingenergy or 0300

123 1234 ) and the Energy Saving Trust in Scotland (www.est.gov.uk/scotland or

0800 512 012).

This a guidance document only. At all times, the onus is on the owner of the

installation to ensure that they are aware of the requirements of the FIT Order

and related legislation.

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http://www.est.gov.uk/scotland%20or%200800%20512%20012

http://www.est.gov.uk/scotland%20or%200800%20512%20012


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1. Introduction

Chapter summary

Sets out Ofgem‟s role in the FIT scheme and introduces the purpose and key

areas covered by this document.

1.1. The FIT scheme requires FIT Licensees to pay fixed tariffs to qualifying

renewable and combined heat and power(CHP) installations for electricity

generated and electricity exported to the transmission or distribution network.

The cost of the FIT scheme is spread across each of the FIT Licensees based upon

their share of domestic electricity supply customers, in a process known as

levelisation.

1.2. Generation payment rates vary depending on the technology and TIC

of the installation. An installation will receive the generation tariff rate and export

tariff rate applicable on the Eligibility Date of the installation.

1.3. Generation and export tariffs are adjusted by the Retail Prices Index

by Ofgem in accordance with FIT legislation.

1.4. All solar PV installations and extensions with an Eligibility Date of 1

August 2012 onward receive an increased export tariff rate regardless of

capacity. Tariff information is available from Ofgem's website: www.ofgem.gov.uk

click on „Sustainability‟, then „Environmental Programmes, then „Feed-in tariff

Scheme‟.

1.5. Installations which (when accredited) would have eligibility dates after

1 December 2012 must meet the eligibility criteria5, in order to qualify for FIT

payments. This document explains what these criteria are. For installations which

have an Eligibility Date prior to 1 December 2012, the criteria is slightly different.

In these circumstances, please contact Ofgem for more information.

1.6. Applications for FIT payments are made through one of two routes:

Owners of solar PV or wind installations with a DNC of 50kW or less, or

microCHP, need to ensure they use Microgeneration Certification Scheme

(MCS) certified equipment installed by an MCS certified installer. Applicants

should approach their electricity supplier for further details relating to

accreditation.

Owners of solar PV or wind installations with a DNC over 50kW up to a TIC of

5MW and AD or hydro installations of any capacity up to 5MW must apply to

Ofgem for ROO-FIT accreditation. More detail on ROO-FIT accreditation is

available in Chapter 4 of this document.

5 as set out in The Feed-in Tariffs Order 2012 (the "FIT Order") and the revised Schedule A to Standard

Licence Condition 33

http://www.ofgem.gov.uk/fits


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Role of Ofgem in the FIT

1.7. Ofgem has a number of statutory duties and functions to perform in

respect of the FIT scheme. These include:

Assess and determine applications for preliminary accreditation in respect of

wind and solar PV installations over 50kW DNC up to 5MW TIC and all

installations using hydro or AD technology up to 5MW TIC

Assess and determine applications for accreditation in respect of installations

(over 50kW up to 5MW), and all installations using hydro or AD technology in

generating electricity

Assess and determine applications for pre-registration of “community energy

installations” and “school installations”

allocating tariff codes and (where applicable) rates

calculating and publishing FIT payment rate tables

establishing and maintaining the Central FIT Register

calculating, periodically and annually, the FIT contribution of each Licensee,

receiving Levelisation Payments from all FIT Licensees, and making

Levelisation Payments

monitoring Licensed Electricity Suppliers' compliance with the requirements of

Section C of the Electricity Supply Licence and the FIT Order 2012

publicly reporting on Licensed Energy Suppliers‟ compliance, and

publicly reporting the total number of FIT Generators registered on the

Central FIT Register, and the number of MWh generated and FIT Payments

made under the FIT

1.8. We carry out these functions as efficiently and effectively as possible

according to the provisions of the relevant legal requirements. We cannot act

beyond the scope of the powers laid down in legislation and the FIT Order.

Amendments to the relevant legislation and Orders are a matter for the Secretary

of State.

Queries

1.9. Any queries in relation to our functions under the legislation should be

emailed to our dedicated support team at [email protected]. The nature of

the query should be clearly marked. Written queries should be sent to the



11

address on the front of this document, clearly marked for the attention of the 'FIT

Administrator'.

1.10. For telephone enquiries, the team can be contacted on 020 7901 7310

during office hours.

Previous changes to the FIT legislation

1.11. The FIT scheme has undergone a number of changes since its launch

in Great Britain on 1 April 2010. A summary of the key changes are:

Providing greater clarity in relation to the accreditation of installations that

may have received grant funding

A reduction in the tariff lifetime for new PV installations and extensions

from the current 25 years to 20 years

A reduction in tariffs for solar PV installations and the introduction of a

quarterly degression mechanism.

New energy efficiency requirements for solar PV installations with a TIC of

250kW or less

The introduction of a tariff for solar PV installations where the FIT

generator or nominated recipient receives FIT payments for 25 or more

other installations

Changes to the FIT Order (December 2012)

1.12. The enactment of the new FIT Order in December 2012 and related

modifications to the Electricity Supplier Licence conditions has the effect of

implementing the outcome of the Government‟s Response to the consultation on

the Comprehensive Review Phase 2B of the FIT scheme, July 2012. The principal

changes made by this FIT Order include:

Revised tariffs for AD, wind, hydro and microCHP to take effect from 1

December 2012 (or when state aids approval is received, whichever is

later)

Tariffs for the largest wind and hydro bands will be adjusted from April

2013 to reflect changes to level of RO support as a result of the RO

Banding Review6

6 See the Draft Statutory Instrument on The Renewables Obligation (Amendment) Order 2012 on the DECC website


12

A degression mechanism for non-PV technologies which will come in to

effect from April 2014. This can be found in Annex 4

A system of preliminary accreditation for all ROO-FIT technologies i.e.

wind and solar PV installation with a DNC over 50kW and all AD and hydro

installations

Incentives for “community energy installations”, including:

- A relaxation of the energy efficiency requirement of achieving a level D

or above energy performance certificate in order to receive the higher

tariff

- Introducing a tariff guarantee scheme for projects with a DNC of 50kW

or less

A relaxation of the energy efficiency requirement for “school installations”

to achieve a level D energy performance certificate in order to receive the

higher PV tariffs

Changes to definitions of “Site”, “Commissioned” and “Hydro Generating

Station”

Extending the ROO-FIT accreditation process to include hydro installations

with a DNC of 50kW or less

1.13. We have updated this document to take account of these changes

following the laying of draft legislation before Parliament.

1.14. Separately, guidance has been drafted for Community Organisations and

Education Providers. This can be found on our website7 and we expect to publish

this for consultation by 14 December 2012.

1.15. Further information on all policy consultations and decisions can be found

on the DECC website8.

This document

1.16. Article 31 of the FIT Order sets out that the Authority may publish

procedural guidance for various participants in connection with the administration

of the FIT scheme. The purpose of this document is to provide guidance to

7http://www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff

Scheme‟ 8http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/background/back

ground.aspx

http://www.ofgem.gov.uk/


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existing or prospective FIT Generators and to set out procedures for

implementing the accreditation provisions under FIT legislation

1.17. It is intended to be a working document and may be updated from

time to time as the scheme evolves. It replaces the guidance of the same name

published on 26 July 2012. It reflects recent changes to the FIT Order and

Schedule A to Standard Licence Condition 33 that are due to be enacted in 1

December 2012.

1.18. The document does not anticipate every scenario which may arise.

Where a scenario arises which is not addressed in these procedures, we will

adopt an approach consistent with the relevant legislation. Any separate guidance

published in addition to this document will be posted on our website.

1.19. This is a guidance document only. At all times, the onus is on the

owner of the installation to ensure that they are aware of the requirements of the

FIT Order and related legislation. This document is not intended to provide

comprehensive legal advice on how the FIT Order should be interpreted.

1.20. General questions on this document and ROO-FIT accreditation should

be directed to the Renewables Team ([email protected] and 020 7901

7310).

1.21. Specific questions relating to compliance with the SLCs and FIT Order

should be directed to the FIT Compliance Manager

([email protected]).

1.22. Specific questions regarding the Central FIT Register and Fraud

Prevention should be directed to the Central FIT Register Manager


1.23. Specific questions regarding Community Organisations or Education

Providers should be directed to the FIT Community team


1.24. 'Ofgem', 'us', 'our' and 'we' are used interchangeably when referring to

the exercise of the Authority's powers and functions under the Orders.






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2. Eligibility for the FIT scheme

Chapter summary

Outlines the key eligibility requirements of the FIT Order and Schedule A to

Standard Licence Condition 33. These requirements are covered in detail in the

this chapter.

Eligibility Requirements

2.1. When determining the eligibility, the following requirements are

considered:

the “Site”

rating of generating equipment

the implications of Non-Fossil Fuel Obligation (NFFO)/Scottish Renewables

Obligation (SRO) contracts

extensions

energy efficiency requirements (including benefits for Community

Organisations and Education Providers

multi-installation tariffs

the combination of FITs and grants

Definitions of "Eligible Installation" and "Site"

2.2. The boundary of the "Eligible Installation" and the "Site" of the

installation will be determined as part of our assessment of an application for

ROO-FIT accreditation. This determination is relevant because, under the FIT

Order, the total capacity of the same eligible technology type on a single Site will

affect eligibility and tariff level.

Eligible Installation

2.3. "Eligible Installation"9 is defined as:

" any Plant on a Site which is capable of Small-scale Low-carbon Generation; and

except as provided otherwise in the FIT Order all such Plant on the same Site

which is capable of generating electricity from the same type of Eligible Low-

carbon Energy Source is to be treated as a single Eligible Installation."

2.4. Where “Plant” is further defined as “any equipment, apparatus or

appliance”.

9Schedule A to Standard Condition 33 of the Electricity Supply Licence


15

2.5. Given these definitions, we expect any application made to us to set

out all of the Plant that constitutes the Eligible Installation in question.

Furthermore, we expect all of this Plant to have been commissioned if

accreditation is to be granted.

2.6. For the purposes of ROO-FIT accreditation, an installation is eligible if

it is an installation that does not use an MCS-FIT technology and would receive

accreditation under the Renewable Obligation Order (ROO), were an application

to be made for such an accreditation10.

Defining "Site"

2.7. In advance of accreditation being granted, we must undertake an

assessment of the „Site‟ of an Eligible Installation. The extent of the Site will

determine the extent of the Eligible Installation that is eligible for FITs payments.

The extent of the Eligible Installation will in turn determine its capacity and its

generation tariff.

2.8. Site is determined by reference to the following criteria:

a) the meter point administration number (“MPAN”) of the meter measuring

the supply of electricity to the premises at which the installation is

located;

b) the address of the premises at which the installation is located;

c) the Ordnance Survey grid reference at which the installation is located;

and

d) any other factors which the Authority considers relevant

2.9. Under criteria „d‟ above, the other factors that we will take into

account include those covered under our guidance regarding the definition of a

“generating station” developed under the Renewable Obligation (RO).

2.10. The Site assessment is completed as part of our review of an

application for FIT accreditation (or preliminary accreditation). The assessment is

completed on a case-by-case basis taking into account each of the factors

detailed in paragraph 2.8 above.

2.11. A domestic or non domestic postal address at which an installation (or

several installations of the same technology) is located would normally be viewed

as a single Site, but not in every case.

2.12. In the main, where more than one installation of the same technology

connects to the distribution or transmission network through the same grid

connection (and hence share the same supply and/or export MPAN) they will be

considered to be located on the same Site.

Significance of MPAN in prescribed cases

10 Article 6(1)(a),6(3)(b) - FIT Order


16

2.13. There are three scenarios where the supply MPAN - criteria „a‟ above -

will not be taken into account when completing the Site assessment. This will

enable certain installations sharing a grid connection but that are not otherwise

electrically or mechanically connected to be considered to be located on separate

Sites. The three scenarios are:

1. Where two or more Eligible Installations of the same eligible low

carbon energy source are attached to self contained private residential

dwellings e.g. park homes11.

2. Where two or more hydro installations are supplied with water by or

from separate civil works12.

3. Where two or more hydro installations are supplied with water by or

from the same civil works and one or more of those installations are

driven by a statutory compensation flow13.

Claiming FIT payments when Site is determined in prescribed cases

2.14. Where several Sites share a grid connection, each Site should

independently meter the renewable electricity generated. If separate generation

metering is not available, generation payments may be calculated by pro-rating

any meter readings that may be available14.

2.15. Where several Sites share a grid connection, eligibility to receive FIT

export payments may be affected:

Where the TIC of an Eligible Installation on a Site is 30kW or less, FIT

export payments can be deemed.

Where the TIC of an Eligible Installation on a Site is greater than 30kW,

and it is not possible to separately meter the renewable electricity

exported onto the distribution or transmission network from that individual

Site, it is not possible to deem the amount of export. In such

circumstances the export from the Site may be calculated by pro-rating

any meter readings that may be available. It may, alternatively be

possible to independently negotiate a Power Purchase Agreement (PPA)

with an energy company outside of the FIT scheme.

Specified maximum capacity

2.16. The "specified maximum capacity" of Eligible Installations is 5MW

TIC15. This means that, on a Site, it is possible to have up to 5MW of generating

capacity installed that generates electricity from the same eligible low-carbon

11 Article 14(4)(a) - FIT Order 12 Article 14(4)(b) - FIT Order 13 Article 14(4)(c) - FIT Order 14 Schedule A to Standard Condition 33 of the Electricity Supply Licence 15 Article 3 - FIT Order


17

energy source. Should the TIC exceed 5MW, all Eligible Installations that

constitute the TIC will become ineligible under the scheme.

Definition of TIC and DNC

2.17. TIC is defined in Schedule A to Standard Licence Condition 33 as:

"the maximum capacity at which an Eligible Installation could be operated for a

sustained period without causing damage to it (assuming the Eligible Low-carbon

Energy Source was available to it without interruption), a declaration of which is

submitted as part of the processes of ROO-FIT Accreditation and MCS certified

Registration."

2.18. DNC is defined in Schedule A to Standard Licence Condition 33 as:

"The maximum capacity at which the installation can be operated for a sustained

period without causing damage to it (assuming the source of power used by it to

generate electricity was available to it without interruption) less the amount of

electricity that is consumed by the plant."

2.19. When assessing a ROO-FIT application, we must have regard for the

definitions of TIC and DNC. The FIT Generator will declare the TIC and DNC of

their installation as part of their application for ROO-FIT accreditation. In the

main, we would consider the capacity rating of the generating equipment to

indicate the TIC of the installation, with any other restrictions, such as the

capacity of parasitic loads, being factored into the DNC.

2.20. Given the importance of TIC when determining tariffs for an Eligible

Installation we will request third party verification of it during the accreditation

process. This could take the form of a declaration made by the installer or

manufacturer of the generating equipment. If, for any reason, we remain unclear

as to the TIC of an Eligible Installation, we will request that the applicant

arranges for an independent audit report to be submitted to us. This report will

attest to the TIC of the Eligible Installation, with reference to the legislative

definition.

De-rating or altering an installation to cap its generating capacity

2.21. Where an applicant wishes to declare a TIC which deviates from the

capacity rating of the generating equipment, it is the responsibility of the FIT

Generator to provide us with sufficient evidence which establishes the TIC of the

installation. If a FIT Generator wishes to apply for accreditation of an installation

on the basis of de-rated or capped capacity equipment, they will need to satisfy

Ofgem that the TIC is in accordance with the FIT Order (as amended). Further

information can be provided upon request by email: [email protected]

Definition of “Commissioned”



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2.22. The Eligibility Date (see Chapter 4) of an Eligible Installation is

important as, in the majority of cases, it will determine the generation and export

tariff. The date on which an Eligible Installation is commissioned will be its

Eligibility Date, as long as an application for accreditation is made in advance of

the installation being commissioned16.

2.23. The term “commissioned” is defined in FIT legislation17 as meaning:

in relation to an Eligible Installation, that:

(a) such procedures and tests have been completed as constitute, at the time

they are undertaken, the usual industry standards and practices for

commissioning that type of installation such that it is capable of operating

at its Declared Net Capacity (assuming that the relevant Eligible Low-

Carbon Energy Source was available to it without interruption or

limitation); and

(b) the installation is connected to Plant such that the whole of its maximum

output could be used in a permitted way;

For this purpose:

(1) the maximum output of an installation is the amount of electricity that it

would generate if operated at its Declared Net Capacity; and

(2) electricity is used in a permitted way if it is:

(i) consumed by the FIT Generator or (if different) the operator of the

installation, or by persons to whom it is supplied by the FIT

Generator; or

(ii) Exported.

2.24. During our assessment of an application for accreditation, we will

request independent verification that the Eligible Installation in question has been

commissioned. This information will be assessed against the definition in the FIT

Order. Such verification could take the form of:

- notice from the Distribution or Transmission Network Operator that the

installation was permitted to export to the grid, for example witnessed

G59/2 test documentation

- confirmation from the installer as to the date on which the installation was

commissioned, and/or

- An audit report from an independent party that attests to when the

installation was commissioned and the configuration of the installation at

the relevant date.

16 An application for ROO-FIT accreditation can be made up to two months prior to commissioning through

the Renewables & CHP Register. 17 Schedule A to Standard Condition 33 of the Electricity Supply Licence


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Metering

2.25. FIT payments are based on generation and export meter readings18.

All metering used for measuring generation and export from FIT installations

must be approved to set standards (see below). Exported electricity can be

deemed19 for installations with a TIC of 30kW or less where it is not possible or

practical to measure electricity generation with an export meter20. For all other

installations, an approved export meter is required in order to receive FIT export

payments.

Metering requirements

2.26. All metering which is intended to be used to record generation or

export for FIT payment purposes must comply with specific metering legislation21.

2.27. The National Measurements Office (NMO) approve meters, on Ofgem„s

behalf, for use where the maximum demand exceeds 100kW. It also approves

any modifications to existing meters that originally received approval prior to the

implementation of the Measuring Instruments (Active Electrical Energy Meters)

Regulations 2006 (the MI (AEEM) Regulations)22.

2.28. A meter can also be regarded as approved for the purposes of the FIT

scheme if it has been approved by, or under similar regulations to the MI (AEEM)

Regulations after 2007 in other European Member States. Where a FIT Generator

would like to use a meter approved in another jurisdiction, it should direct Ofgem

to the applicable laws and any relevant published list of meters, providing a copy

of the relevant certification for the meter.

2.29. As part of the accreditation process, we review all installed metering

which will be used for FIT payment purposes. An installation will not receive

accreditation unless it uses approved metering and we will withhold accreditation

until approved metering is installed. We recommend that any installation which

does not have approved metering replace that metering before applying for

accreditation to avoid affecting the period from which the installation can receive

FIT payments.

2.30. As set out above, a meter has to be approved to appropriate

standards. It is our understanding that, at the current time, there are no direct

current meters that meet the FIT metering legislation requirements.

2.31. The FIT legislation does not make provision for the use of estimates.

18 See Chapter 4 of this document for more information on FIT payments 19 Schedule A to Standard Condition 33 of the Electricity Supply Licence 20 Deemed at 50% of generation for micro-CHP, AD, solar PV and wind. Deemed at 75% of generation for hydro. 21 The definition of „metering legislation‟ can be found in Schedule A to Standard Condition 33 of the Electricity Supply Licence 22 These regulations implement part of the Measuring Instruments Directive (MID) in to UK legislation


20

Use of previously accredited equipment

2.32. Where Ofgem has reason to believe that any generating equipment

has formed part of an installation previously accredited under the FIT or RO

schemes, the installation will not receive FIT accreditation. That said, FIT

legislation does not preclude the use of second hand or refurbished generating

equipment that has not formed part of an installation previously accredited under

the FIT or RO schemes.

2.33. Where a FIT installation is moved from its Site, for example where its

owner moves property and takes the generating equipment to their new

property, they will not be entitled to receive a new FIT accreditation, nor will they

be able to continue to receive FIT payments under their previous accreditation.

Installations which are selling or have sold electricity under

a NFFO or SRO contract23

2.34. Electricity from installations which are selling or have sold electricity

pursuant to a NFFO or SRO arrangement will be ineligible to join the FIT scheme.

2.35. In addition to the requirements set out in Article 7(1)(c) of the FIT

Order, we will also look to the NFFO/SRO requirements set out in the ROO when

assessing an application for accreditation. Further guidance on the NFFO/SRO

requirements under the ROO is available in the 'Renewables Obligation: Guidance

for generators' available on our website.

Hydro installations and pumped storage

2.36. “Hydro Generating Station” is defined in the FIT Order as meaning:

“a generating installation driven by water, except for such an installation—

a) driven by waves, ocean currents or geothermal sources;

b) driven by tidal flows, unless also driven partly by non-tidal flows from a

water course; or

c) where the hydrostatic head of the water has been increased by pumping”

2.37. The definition of “Hydro Generating Station”24 must be read alongside

the FIT “Site”25 requirements.

2.38. A Hydro Generating Station is composed of both the generating

equipment and civil works. In most cases where more than one turbine is

23 NFFO contracts were the initial means used by the Government to implement its renewable energy policy, prior to the introduction of the RO. These required the then Public Electricity Suppliers to purchase electricity from renewable generators and provided for this electricity to be purchased at fixed prices for long term contract periods (typically 15 years). 24 The definition of “Hydro Generating Station” can be found in the FIT Order, Part 1 Introductory provisions 25 The definition of “Site” can be found in Article 15, the FIT Order


21

supplied by water from the same civil works, all such turbines will be regarded as

part of the same generating station.

2.39. A Hydro Generating Station which generates electricity from water

where the hydrostatic head of the water has been increased by pumping will not

be eligible to receive FIT accreditation.

2.40. If it is unclear to us as to whether water that feeds an Eligible

Installation has been pumped or not, we will request that the applicant arranges

for an independent audit report to be submitted to us.

Installations in receipt of a grant from public funds

2.41. We must not accredit an installation where a grant has been made

from public funds towards any costs of purchasing or installing the installation.26

The term “grant from public funds” is defined in the FIT Order to “mean a grant

made by a public authority or by any person distributing funds on behalf of a

public authority.27”

2.42. Grant(s) received for items outside of the Eligible Installation need not

be declared as part of an application for FIT accreditation. In addition to the FIT

Order‟s definitions of the elements which make up the installation28, we interpret

the definition of generating station in the same way that we do under the RO

when considering whether a grant has been made for the purposes of purchasing

or installing the installation29.

2.43. Please also note the items listed in Table 2 below which sets out a list

of illustrative standard costs that will be taken into account in addition to those

factored into the “generating station” definition.

2.44. Table 1 below provides some illustrative examples of costs that would

not be considered as part of the installation for the purposes of the FIT scheme.

Table 1: Examples of costs not associated with an installation

Technology Example of costs that are not part of the installation for the

purposes of FIT

PV Pre-design feasibility studies

Local electricity grid reinforcement/upgrades

Wind Pre-design feasibility studies


MicroCHP Pre-design feasibility studies

26

Article 7(3) of the FIT Order 27 Article 2(1) of the FIT Order 28 Schedule A to Standard Licence Condition 33 defines 'Eligible Installation' and 'Plant' 29 See Appendix 2 of the „Renewables Obligation: Guidance for generators‟


22

AD Infrastructure for transmitting electricity/heat generated by AD

plant e.g. to neighbouring buildings.


Transforming digestate into different products e.g. dewatering to

create dry compost as opposed to a low dry matter liquid.

Secondary gas treatment/use

Educational facilities associated with the AD plant e.g. visitor

centre.

Large scale:

Secondary feedstock pre-treatment

Small scale:

Slurry/maize storage

Hydro Pre-design feasibility studies


2.45. The FIT Order 2012 allows an installation to receive FIT payments

even if a grant has been made from public funds towards any of the costs of its

purchase or installation provided that the grant is made towards reasonable

additional costs30. Reasonable additional costs are those non-standard costs

incurred as a result of installing measures directly related to avoiding or

mitigating environmental harm. This may include, for example, measures to

protect fish and other wildlife in small hydro schemes.

2.46. Costs that are standard to an installation of the specific technology

type - i.e. costs taken into account in the development of the FIT tariff bands -

will not be considered reasonable additional costs. The table below illustrates the

types of standard costs that were used in developing the tariffs for AD and hydro.

These lists are not exhaustive.

30 Articles 7(4) and 7(5) FIT Order


23

Table 2: Illustrative standard costs that are associated with an

installation

Capital costs Operational costs

AD Both large scale and small scale:

Digester tank

Gas holder/collection kit

Primary gas treatment and use

Electricity generating equipment

e.g. CHP

Digestate storage

Digestate processing (preparing

it to be spread and minor

processing)

Grid connection (to existing grid)

Planning/permitting costs

Large scale:

Reception building

Pipe work

Loaders

Gas collection and storage

Pasteurisation equipment

Staff costs incl. training etc

Permitting, licensing and other

regulatory requirements (e.g.

waste management, ABPR)

Fuel for mobile plants (i.e.

loading shovels for a waste

based plant)

Digestate spreading

Parasitic electricity use by the

plant

Hydro Design studies and

administrative costs

Civil engineering

Hydromechanical and electrical

equipment

Installation and commissioning

Costs of planning/permitting

Maintenance costs for small

systems (<50kW) are based

on an annual

inspection/service cost –

routine maintenance such as

screen cleaning is expected to

be carried out by the owner.

For larger systems, costs

assume an annual

maintenance charge based on

a service contract.

2.47. Costs associated with purchasing land or inefficient or poorly located

installations would not be considered reasonable additional costs.

2.48. The costs and returns associated with solar PV, wind and CHP are

relatively standard. We do not expect installations using these technologies to

have reasonable costs associated with avoiding or mitigating environmental

harm.

2.49. It is for the FIT Generator to identify and provide justification to

Ofgem that:

the installation has incurred costs additional to those standard costs

associated with an installation of that technology and size,


24

those costs have been incurred in the avoidance or mitigation of

environmental harm, and

any grant(s) received for the installation have been made to cover all or

some of the cost of those measure(s) and no other costs of the

installation.

2.50. Ofgem cannot confirm whether a grant meets the reasonable costs

exemption before receiving an application for accreditation. It is for the FIT

Generator to prove to Ofgem that their installation meets the requirements of

this exemption at the point of application.

Permitted grants under 2010 FIT Order

2.51. An applicant for FIT accreditation may be able to receive a grant in

respect of the costs of purchasing or installing their installation and retain it

where it is:

a grant made before 1 April 2010 in respect of costs of an purchasing or

installing an installation which was commissioned before 15 July 2009; or

a grant made before 1 April 2010 in respect of costs of an purchasing or

installing an installation on a residential property which was commissioned

between 15 July 2009 and 31 March 2010.

2.52. The term “made” means the offer of a grant is accepted by the

recipient.

Compliance with a de minimis aid commission regulation

2.53. Additionally an applicant may still be able to retain their grant and

receive FIT payments where31:

the grant is made before 1 July 2011, and

the installation is first commissioned before 1 October 2011, and

the Authority is satisfied that the making of FIT payments in respect of the

installation would be in accordance with a de minimis Commission

Regulation32.

2.54. In order to establish whether or not an installation is entitled to receive

FIT payments under these provisions, the FIT Generator must first establish whether

the grant(s) was made and installation commissioned within the window described in

first two bullets above. Where the installation meets the first two bullets above, the

31 Article 8(5) - FIT Order 2010 32 Article 8(6) definition of "a de minimis Commission Regulation" - FIT Order 2010


25

FIT Generator must then undertake a self-assessment against the requirements of

the de minimis Regulations33.

2.55. Applicants seeking to use this exemption are required to sign a

declaration34. The declaration confirms that the applicant has completed a self-

assessment and that receiving FIT payments does not and will not contravene the de

minimis regulations.

Grants that do not meet the exemptions

2.56. Where a grant for an installation does not meet any of the above

exemptions, the grant must be repaid before the installation can be considered for

the FIT. The FIT Generator should discuss grant repayment with the grant issuing

body directly. Where it is appropriate to do so, we will request evidence that a grant

has been repaid to the relevant body.

Modifications: extensions and reductions

2.57. Any modification affecting the TIC or DNC of a FIT accredited installation

should be notified to Ofgem and the FIT Licensee as soon as reasonably possible.

The modification of an installation's TIC or DNC may affect the ongoing eligibility of

the installation or tariff level which the entire installation or part of the installation

may be entitled to receive.

2.58. Other changes to an installation, such as replacement meters, should also

be reported to the FIT Licensee and reflected as an amendment to the ROO-FIT

accreditation application.35

Definition of extension

2.59. The term "Extension" is defined as a modification to an accredited FIT

installation to increase its TIC from the same eligible low-carbon technology.

2.60. Ofgem is responsible for assessing applications in respect of solar PV and

wind extensions with a DNC over 50kW and all extensions to AD and hydro

installations. The FIT Generator must amend their original FIT accreditation

application to reflect the TIC change. If the extension is successfully accredited,

Ofgem will inform the FIT Generator.

2.61. With the exception of stand-alone installations, extensions to solar PV

installations from 1 April 2012 need to meet the new energy efficiency criteria in

order to receive the higher tariffs. Please see the section on energy efficiency within

this chapter for more information.

33Detailed information on the de minimis regulations and how to self-assess is available on our website: www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟ 34 See footnote 21 35 Article 23- FIT Order



26

2.62. The FIT Licensee must be made aware of any changes affecting FIT

payments. Once accredited, the FIT Generator must inform the FIT Licensee. The FIT

Licensee will revise the Statement of FIT Terms as required and an amended version

will be agreed with the FIT Generator.

Extensions to FIT accredited installations

2.63. Where a FIT installation is extended using the same technology type, the

extension is assessed as a separate Eligible Installation. If successfully accredited,

the extension will be assigned a separate eligibility period and separate tariff code

based on the aggregate TIC of both the extension and existing FIT installation36.

Both installations will, however, share the same FIT ID37 on the Central FIT Register

(CFR) - the register on which all installation details are stored.

Extensions using a different technology

2.64. Where a FIT installation is extended using a different eligible technology,

the extension is also treated as a separate Eligible Installation38.

2.65. In circumstances where two different technologies share the same

Generation Meter, eligible generation will be pro-rated between the installations in

proportion to their TICs.

Extending an installation which is not FIT accredited

2.66. Where an installation which is not FIT accredited is extended using an

eligible low-carbon energy source39 and the combined capacity does not exceed 5MW

TIC, the extension may be eligible to receive FIT accreditation.

2.67. Provided that (i) the combined TIC of the original installation and the

extension does not exceed 5MW and (ii) the DNC of the extension is more than 50

kilowatts, the extension is treated as a new installation for the purposes of making a

ROO-FIT application. If successfully accredited, the extension is treated as a

separate Eligible Installation and is assigned a tariff code based on the aggregate TIC

of both the extension and the non-FIT installation40.

Definition of reduction

2.68. The term “Reduction” is defined as a modification to an accredited FIT

installation to decrease its TIC from the same eligible low-carbon energy source.

2.69. Reductions to a FIT accredited installation should be reported to Ofgem

and the FIT Licensee as soon as reasonably possible.

36 Article 18(2)(c) - FIT Order 37 The unique identifier on the Central FIT Register 38Schedule A to Standard Condition 33 of the Electricity Supply Licence clause 10.4 39Defined in Schedule A to Standard Condition 33 of the Electricity Supply Licence 40 Article 19(2)(c) - FIT Order


27

Meter readings and pro-rating

2.70. Meter readings should be taken at the time the extension is commissioned

or the reduction takes place. For separate installations using the same technology

sharing generation and export meters, a pro rata calculation will be used to

determine how much electricity generation and export is assigned to each part of the

Eligible Installation. This calculation will be based on the proportion of the TIC of

each of the installations41.

Exceeding the specified maximum capacity

2.71. If the combined TIC of a technology on a Site exceeds 5MW TIC (or 2kW

for CHP installations), the total installation (the original installation plus any

extension(s)) will become ineligible to receive FIT payments42. The installation may

instead be eligible for other schemes, such as the RO.

Energy efficiency requirements (PV only)

2.72. Where the energy efficiency requirement applies ( see paragraphs 2.79-

2.83) applicants are required to demonstrate that the building to which the solar PV

is wired to provide electricity has achieved an Energy Performance Certificate (EPC)

rating of level D or above in order to receive the higher tariff. This is on the

assumption that the multi-installation tariff (see multi-installations tariff section)

does not apply.

2.73. An EPC level of D or above must have been issued by the Eligibility Date

of the FIT installation. Any installation that has not achieved an EPC level D or above

at this time will receive the lower tariff. An exception is for community energy and

school installations (see paragraph 2.92 onwards).

2.74. There are a limited number of situations where this requirement does not

need to be met. These are discussed later.

What is an EPC?

2.75. The Energy Performance of Buildings („EPB‟) Regulations43 require an

Energy Performance Certificate (EPC) to be obtained whenever a building is

constructed or marketed for sale or rent. The certificate gives an asset rating which

tells you how energy efficient a building is.

2.76. A „rating band‟ is allocated on both domestic and non-domestic EPCs.

41 Clause 10 of Part 1 to Schedule A to Standard Condition 33 of the Electricity Supply Licence 42 Article 16(3) - FIT Order 2010 43 EPB Regulations http://www.legislation.gov.uk/uksi/2007/991/contents/made (England and Wales): http://www.legislation.gov.uk/ssi/2008/309/contents/made (Scotland)

http://www.legislation.gov.uk/uksi/2007/991/contents/made

http://www.legislation.gov.uk/ssi/2008/309/contents/made


28

2.77. A domestic EPC may have two rating bands – an energy efficiency rating

band and an environmental impact rating band. For the purpose of meeting the FIT

energy efficiency requirement under the FIT, the rating band addressing energy

efficiency is the relevant rating band. The EPC allocates an estimate of the amount of

energy that would be required for certain activities (such as heating) associated with

the use of the building.

2.78. An EPC is valid for ten years from the date of issue unless a new

assessment is made and a new certificate is issued.

2.79. More information on EPCs can be found on the Department of

Communities and Local Government (DCLG) website44 and the Scottish Government

website45

Assessing whether the energy efficiency requirement applies

2.80. The energy efficiency requirement does not apply to standalone PV

installations.

2.81. The energy efficiency requirement applies to a PV installation or

extension with an Eligibility Date on or after 1 April 2012 which is wired to a „relevant

building‟ or wired to provide electricity to one or more such buildings.

2.82. A relevant building is defined in Schedule A to Standard Licence Condition 33 46 and must be a roofed construction which has walls, and for which energy is used

to condition the indoor climate. Examples of energy being used to condition the

indoor climate include heating and cooling systems. If any aspect of this definition

does not apply to a building to which the PV installation is wired to provide electricity

to then the energy efficiency requirement does not apply.

2.83. A „relevant building‟ must also be a building in respect of which an EPC

can be issued. If an EPC cannot be issued then the building is not a relevant building

and the energy efficiency requirement does not apply. Under the EPB Regulations

some properties are exempt from the requirement for an EPC; however if a building

can be assessed and receive an EPC then the energy efficiency requirement will

apply under the FIT legislation (irrespective of whether an EPB exemption applies or

not).

2.84. Failure to demonstrate that the efficiency requirement does not apply will

result in the FIT generator receiving the lower tariff.

Meeting the requirement

44 DCLG Website Energy Performance http://www.communities.gov.uk/planningandbuilding/sustainability/energyperformance/ 45http://www.scotland.gov.uk/Topics/Built-Environment/Building/Building-standards/publications/pubepc 46Annex 5 of schedule A to Standard Condition 33 of the Electricity Supply Licence

http://www.communities.gov.uk/planningandbuilding/sustainability/energyperformance/

http://www.scotland.gov.uk/Topics/Built-Environment/Building/Building-standards/publications/pubepc


29

2.85. Where the energy efficiency requirement applies, the FIT generator will be

asked by Ofgem to provide a copy of a valid EPC level D or above. The EPC must be

the most recent EPC that has been issued in respect of the relevant building and

should confirm:

Whether an EPC level D or above has been achieved (or level G for community

energy and school installations);

The date on which the EPC was issued; and

2.86. An EPC is „valid‟ if it has been issued on or before, but not more than 10

years before, the Eligibility Date47 of the PV installation and is the most recent EPC

that has been issued in respect of the relevant building.

2.87. A Display Energy Certificate (DEC) will not be accepted as proof of

meeting the energy efficiency requirement.

2.88. Where an installation is wired to provide electricity to a number of

buildings that are „relevant buildings‟, only one of those buildings needs to satisfy the

energy efficiency requirement.

2.89. The following examples describe different scenarios and explain what

evidence is needed, where an installation is wired to provide electricity to:

One „relevant building‟: must provide an EPC for that building

One non „relevant building‟: must prove that the building is not a „relevant

building‟ (example: letter from EPC assessor) and that they therefore do not

need to meet the energy efficiency requirement

Wired to provide electricity to multiple „relevant buildings‟: must provide one

EPC for any one of the buildings

Wired to provide electricity to multiple non-relevant buildings: must prove

that all the buildings do not need to meet the energy efficiency requirement

Wired to provide electricity to a combination of „relevant‟ and non „relevant

buildings‟: must provide one EPC for any of the relevant buildings.

Declarations

2.90. Applications for accreditation received on or after 1 April 2012 must

include a declaration relating to the energy efficiency requirement (see Appendices 2

and 3). The declaration must be signed to confirm that the energy efficiency

requirement is applicable and if it has been met.

47See paragraph 4.12 in Chapter 4


30

2.91. We advise all parties to read the relevant sections of the FIT

Order, the SLCs and this guidance document and take their own legal

advice, before signing the relevant declarations. A copy of the declarations can

be found in Appendices 2 and 3.

Extensions and the energy efficiency requirement

2.92. Extensions with an Eligibility Date on or after 1 April 2012 must also meet

the energy efficiency requirement.

2.93. As with new installations, the EPC certificate date must be on or before

the Eligibility Date. For extensions, the EPC certificate issued date must be on or

before the commissioned date of the extension.

Community Energy Installations and School Installations

2.94. DECC have introduced a number of measures to benefit “community

energy installations48” and “school installations49”.

2.95. From 1 December 2012, community organisations and education

providers who install solar PV community energy and school installations will benefit

from a relaxation of the energy efficiency requirement. This means that a valid non-

domestic EPC that has achieved any level, i.e. G or above, will be sufficient to meet

the energy efficiency requirement.

2.96. Community energy and school installations with a DNC over 50kW may

wish to apply for ROO-FIT preliminary accreditation. In certain circumstances,

preliminary accreditation may provide a tariff guarantee for a set validity period and

confirmation of eligibility prior to commissioning the installation. See Chapter 3 for

information on how to apply for preliminary accreditation.

2.97. Extensions to existing installations, even if they are solar PV community

energy or school installations, will still be required to meet the existing EPC level D

or above in order to receive the higher tariff.

2.98. FIT Generators wishing to benefit from the relaxation of the energy

efficiency requirement will be asked during the ROO-FIT accreditation process

whether the installation meets the definition of a community installation or school

installation as defined in the FIT Order.

2.99. A FIT Generator who already holds an EPC rated level D or above for the

building to which their installation is wired to provide electricity to will not be

required to demonstrate their status as a community energy or school installation.

48 Article 11(6) – FIT Order 49 Article 12(6) – FIT Order


31

2.100. Documentary evidence to support the verification of the Community

installation or school installation must be submitted during the ROO-FIT application

process. Details of this will be included in the draft guidance document „Feed-in

Tariff: Guidance for Community Energy and Schools‟, which will be published shortly.

Verification of the installation‟s community or school status will be determined by

the Ofgem FIT Community team.

2.101. Once we have verified that the installation is a community energy

installation or school installation, a confirmation of status letter will be sent in writing

via post and email to the applicant.

2.102. For further information on this process, including how to apply and the

supporting evidence required, please email [email protected] or refer to

the Feed-in Tariff: Guidance for community Energy and school installations.

2.103. Further information on the energy efficiency requirement and its impact

on tariff rates is available from the „Feed-in Tariffs - Frequently Asked Questions

document‟50 which is available on the DECC website.

Multi-installation tariffs (PV only)

2.104. Multi-installation tariffs apply to any solar PV installation with a TIC up to

and including 250kW and with an Eligibility Date on or after 1 April 2012 where the

FIT generator or nominated recipient already owns or receives FIT payments from 25

or more other eligible solar PV installations.51

2.105. For the purposes of this document, the multi-installation tariff is a

reduced, middle tariff rate that applies to an installation. However where the energy

efficiency requirement is applicable and not met, the lower tariff rate will always

apply.

2.106. Tariff information is available from Ofgem's website52. Please see table 3

below for an explanation on the effect of the energy efficiency requirement and

multi-installation tariff in terms of the higher, middle and lower tariff rate.

2.107. Solar PV installations (not including extensions) with an Eligibility Date on

or after 1 April 2012 with a TIC up to and including 250kW, with the exception of

stand-alone installations, will need to be assessed to determine whether the multi-

installation tariff applies. Please see paragraph 2.101 for an explanation on the effect

of the energy efficiency requirement and multi-installation tariff in terms of the

higher, middle and lower tariff rate.

50

DECC FITs FAQ Document

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_faqs/fits_faqs.aspx 51 Allocated through the tariff code under Article 13 of the FIT Order 52 FIT Tariff table 1 April 2012 www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟


http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_faqs/fits_faqs.aspx

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_faqs/fits_faqs.aspx


32

Determining when multi-installation tariffs apply

2.108. When determining whether the multi-installation tariffs apply, the

following criteria are relevant:

where the FIT generator for the installation and any persons who are „connected

persons‟ in relation to them (see paragraph 2.88) are, or have applied to be, the

FIT generator or nominated recipient for 25 or more other eligible solar PV

installations on different sites, the multi-installation tariffs will apply; or

where the nominated recipient for the installation and any persons who are

„connected persons‟ in relation to them (see paragraph 2.95) are, or have

applied to be, the FIT generator or nominated recipient for 25 or more other

eligible solar PV installations on different sites, the multi-installation tariffs will

apply.

2.109. A „connected person‟ in relation to a FIT generator or a nominated

recipient, means any person connected to that person within the meaning of section

1122 of the Corporation Tax Act 201053. These provisions are detailed and a full

explanation of them is beyond the scope of this guidance.

2.110. Where participants or prospective participants in the FIT scheme are

assessing whether the multi-installation tariffs may apply to them it is suggested

that they take independent legal advice relevant to their circumstances. Participants

or prospective participants should note that the FIT legislation requires that a FIT

generator or nominated recipient and (in each case) „connected persons‟ are

assessed collectively when assessment is made of whether the multi-installation rate

is applicable.

2.111. Below are some common illustrative examples only of how a person

(„person A‟) may be a „connected person‟ in relation to another person („person B‟):

Person A is person B‟s spouse or civil partner;

Person A is person B‟s relative;

Person A is a relative of person B‟s spouse or civil partner;

Person A is a spouse or civil partner of a relative of person B;

Person A and person B are both companies: and the same person („person

C‟) has control over both;

Person A and person B are both companies; person C has control over

person A; and persons connected with person C have control over person B;

53 Corporation Tax Act2010 http://www.legislation.gov.uk/ukpga/2010/4/section/1122

http://www.legislation.gov.uk/ukpga/2010/4/section/1122


33

Determining when multi-installation tariffs apply upon receipt of notices of change of

FIT generator or nominated recipient

2.112. When determining whether the multi-installation tariffs apply upon a

notice being received of a change in the identity of either the FIT generator or the

nominated recipient for an existing installation, the following criteria are relevant:

Where (as at the date on which the notice is received) the new FIT generator or

new nominated recipient for the installation who is identified in the notice and

any persons who are „connected persons‟ (see 2.93 in relation to them are, or

have applied to be, the FIT generator or nominated recipient for 25 or more

other eligible solar PV installations on different sites, the multi-installation rate

will apply in respect of the installation to which the notice relates.

Continued application of the multi-installation tariff

2.113. If before a change in FIT generator or nominated recipient an installation

is receiving the higher tariff (please refer to tariff table in 2.107) and following the

change the multi-installation tariff is to apply, the tariff level will be lowered as

appropriate to the middle tariff.

2.114. If before a change in FIT generator or nominated recipient an installation

is receiving the middle tariff (please refer to tariff table in 2.107) then, following the

change, although the criteria for the multi-installation tariff may no longer apply, the

multi-installation tariff will continue to apply.

2.115. Hence, if the multi-installation tariff has applied to an installation, the

installation will continue to be subject to the tariff, even if changes in FIT generator

or nominated recipient mean the criteria for the multi-installation are no longer met.

Declarations

2.116. Applications for accreditation and notices of changes of FIT generators or

nominated recipients received on or after 1 April 2012 must include a declaration

relating to the multi-installation tariffs (see Appendix 2 and 3). The owner or

nominated recipient will be required to sign a declaration to confirm that they are or

are not the owner or nominated recipient for 25 or more other solar PV installations.

2.117. There are a number of declarations that can be signed within Appendix 2

and 3, for which there are various outcomes, as set out below:

Where Declaration 4 for new installations and extensions has been signed, this

indicates that the multi-installation tariff will be applicable to the installation.

Where Declaration 5 for new installations and extensions has been signed, this

indicates that the multi-installation tariff will not be applicable to the installation.


34

Where Declaration 1 for changes to the FIT generator or nominated recipient has

been signed, this indicates that the multi-installation tariff will be applicable to

the installation.

Where Declaration 2 for changes to the FIT generator or nominated recipient has

been signed, this indicates that the multi-installation tariff will not be applicable

to the installation unless already subject to the middle tariff.

2.118. All parties should read and be familiar with read the relevant

sections of the FIT Order, Schedule A to Standard Licence Condition 33 , and this

guidance document and take their own legal advice, before signing the

relevant declarations. A copy of the declarations can be found in Appendix 2

and 3.

Existing installations, extensions and other technologies

2.119. Existing solar PV installations with an Eligibility Date before 1 April 2012 will

be included when assessing whether the multi-installation tariff applies. Tariffs for

these existing installations will not change as a consequence of the multi-installation

tariff applying to any new installations.

2.120. In these circumstances the multi-installation tariff will apply to the 26th

installation and each subsequent installation will be subject to the multi-installation

tariff, depending on whether the energy efficiency requirement applies and has been

met.

2.121. Extensions to accredited solar PV installations will not be treated as

separate installations when assessing whether the multi-installation tariff applies.

2.122. FIT installations using technologies other than solar PV will not be included

when assessing whether the multi-installation tariff applies.

The effect of energy efficiency and multi-installation on tariff

rates

2.123. From 1 April 2012, 3 possible tariff rates have been available to solar PV

installations; a higher rate, a middle rate and a lower rate. These rates will be

dependent on meeting the energy efficiency requirement and whether the multi-

installation tariff applies.

2.124. Tariff information is available from Ofgem's website.54

54 FIT Tariff table 1 April 2012 http://www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟



35

2.125. Table 3 provides the tariff outcomes based on a new solar PV installation

with an Eligibility Date on or after 1 April 2012 and its interaction with the energy

efficiency requirement and whether the multi-installation tariff applies.

2.126. Table 3. Multi-installation tariffs

* Installations will receive the lower tariff rate when an installation has not met the

energy efficiency requirement, regardless of whether the multi-installation tariff

should apply

New solar PV installations with an Eligibility Date on or

after 1 April 2012

Multi-installation tariff applies Multi-installation tariff does

NOT apply

Energy efficiency

requirement met by installation

Middle rate Higher rate

Energy efficiency requirement NOT met by

installation Lower rate* Lower rate*

Energy efficiency requirement not

applicable for installation

Middle rate Higher rate


36

3. Preliminary Accreditation

Chapter summary

Outlines the key eligibility requirements of the preliminary accreditation process, the

prerequisite documentation required and how to apply.

What is Preliminary Accreditation?

3.1. Preliminary accreditation under the FIT scheme is a mechanism which

allows prospective generators to obtain an assurance that they will be accredited,

and of the tariff rate they will receive, before they commission their Eligible

Installation. This assurance will have a set validity period depending on the

technology.

3.2. Preliminary accreditation is available to all installations that, once

commissioned, would use the ROO-FIT route of accreditation (solar PV and wind

installations with a DNC over 50kW and all AD and hydro installations). It is not

available to extensions of accredited FIT installations55.

What the FIT Order says

3.3. The FIT Order56 states that the Authority must grant preliminary

accreditation where it is satisfied that specific information has been provided and the

installation, once commissioned, would receive accreditation under the FIT scheme.

How to apply for preliminary accreditation

3.4. An application for preliminary accreditation can be submitted by an

individual or an individual representing a company who proposes to construct or

operate an installation. The 'super user' of the generator account set up on our

Register should be the individual or representative of the company that proposes to

construct or operate the Eligible Installation.

3.5. As with ROO-FIT accreditation, an application for preliminary accreditation

is made via the Register. An application can be submitted at any time prior to the

installation‟s commissioned date - please note the validity period section below. An

application must be accompanied by all prerequisite documentation listed in

paragraph 3.8 below.

3.6. The onus is on the generator to ensure that they are familiar with the

Register and guidance documents in advance of setting up a generator account and

55 Means an Eligible Installation which has been given accreditation 56 Article 9 - FIT Order


37

using the functionality of that account. The applicant will need to comply with the

following steps:

Create a generator account via the Register

Complete an application for accreditation via their generator account,

providing documentation as appropriate

Make the relevant declarations in advance of submitting an application57

Once the declarations have been made, submit the application to us and

respond to any queries we may have on the application. Email notifications

will be sent to alert generators when we raise queries on applications.

3.7. Each application goes through three stages of review. If we require

further information, a query will be raised on the application and the applicant will be

able to view this in their account on the Register. Accreditation will be granted once

we are satisfied that all eligibility criteria have been met.

Prerequisite documentation

3.8. An application for preliminary accreditation must be accompanied by a

number of documents or evidence that the document(s) is not required58:

Planning permission

Grid connection agreement

Relevant licensing and consents (hydro only)

3.9. Each of these documents must be dated on or before the application is

submitted. Where a document is issued after the date of application, preliminary

accreditation cannot be granted. This is a key consideration for parties that wish to

apply for preliminary accreditation.

Planning permission

3.10. An application for preliminary accreditation must be accompanied by a

copy of the planning permission issued under the Town and Country Planning Act

57 An application will not be received by Ofgem until all declarations are agreed and the application

submitted 58 Article 9(3)(3) The FIT Order 2012


38

1990, in relation to installations in England and Wales, or the Town and Country

Planning (Scotland) Act 1997, in relation to installations in Scotland.

3.11. Where a planned installation does not require planning permission,

satisfactory evidence must be provided in support of this. Such evidence could take

the form of a Lawful Development Certificate, a Certificate of Lawful Use or

Development from the Local Authority or a Prior Notification of Proposed Agricultural

or Forestry Development agreement.

Grid connection agreement

3.12. For installations which are to be grid connected, the applicant must

submit a grid connection agreement between them and the transmission or

distribution network operator. The grid connection agreement should be an

agreement in writing for the connection of the planned installation.

3.13. Where an installation does not require a grid connection agreement,

supporting evidence must be supplied. Such evidence could take the form of a letter

from the relevant transmission or distribution network operator confirming that no

new agreement or amendment to an existing agreement is necessary to cater for the

connection of the renewable installation.

3.14. Off-grid installations are not required to provide any documentation to

meet this prerequisite. However please do note the „Material change‟ section below.

Hydro Generating Station licenses and consents

3.15. If the planned installation is a Hydro Generating Station, it must be in

receipt of the following licenses, consents and authorisations:

For Hydro Generating Stations in England and Wales the following

licenses, consents issued under the Water Resources Act 1991(a),

o an abstraction license

o an impounding license

o works to structures in, over or under a main river

For Hydro Generating Stations in Scotland, an authorisation under the Water

Environment (Controlled Activities) (Scotland) Regulations 2011(b) for,

o abstraction

o impounding works

o any other engineering works required for the installation

3.16. The planned installation must be in receipt of all licenses, consents and

authorisations listed above relevant to the planned installation. Where a license,


39

consent or authorisation is not required for the installation, supporting evidence

should be supplied.

Granting preliminary accreditation

3.17. Where we are satisfied that the prerequisite documentation meets the

requirements of the FIT Order and, were the installation to be commissioned, it could

receive accreditation under the FIT scheme, we will grant preliminary accreditation.

We will supply the applicant with a confirmation of preliminary accreditation letter

containing the following information:

The technology, TIC and location of the installation,

Whether the installation is grid connected,

The dates on which the validity of the preliminary accreditation starts and

ends,

The tariff date (see paragraph 3.20) which will apply to the installation if it is

commissioned and applies to convert to full accreditation within the validity

period,

A copy of the tariff table that was applicable on the tariff date,

The preliminary accreditation code (see paragraph 3.26 below),

What constitutes a material change under the FIT scheme (see paragraph

3.29), and

Any general or specific conditions attached to the preliminary accreditation by

the Authority

3.18. The energy efficiency and multi installation requirements are not assessed

as part of the preliminary accreditation process. As such, PV installations affected by

these requirements could receive the higher, middle or lower tariff applicable on the

tariff date.

3.19. Where preliminary accreditation is refused, the applicant will be informed

in writing of the reasons for refusal.

The guaranteed tariff

3.20. Installations granted preliminary accreditation which successfully go on to

receive full accreditation will have their tariff guaranteed at the date the preliminary

accreditation was submitted to Ofgem – the ”tariff date”. Their eligibility period will

begin from their commissioning date.

3.21. If the proposed installation is commissioned and applies for full

accreditation within the validity period (see paragraph 3.25), the installation will be

entitled to receive the FIT tariff available on the tariff date. The tariff guarantee will

be valid provided all eligibility requirements are met and the installation is not


40

materially different to that which received preliminary accreditation (see paragraph

3.29).

3.22. Where an application for preliminary accreditation is received between 1

January and 31 March, the installation will be assigned a tariff date of 1 April from

that calendar year.59

3.23. Where an application for preliminary accreditation is received between 1

April and 31 December, the tariff date for the installation will be the date the

application was received by the Authority60.

3.24. The eligibility period (i.e. the period of FIT support) will be calculated

based on the Eligibility Date of the installation (see paragraph 4.12); not the tariff

date.

3.25. The validity period of the preliminary accreditation tariff guarantee lasts

for a fixed period of time beginning with the date of application for preliminary

accreditation. The duration of validity is dependent on technology61:

PV – 6 months

AD and Wind – 1 year

Hydro – 2 years

Examples

A. A prospective generator applies for preliminary accreditation for a PV

installation on 1 June 2013. Preliminary accreditation is granted. The

installation commissions and applies to convert to full accreditation on 30

November 2013. Full accreditation is granted and the tariff assigned to the

installation is based on the tariffs available on 1 June 2013. The tariff lifetime

is applicable from 30 November 2013.

B. A prospective generator applies for preliminary accreditation for a hydro

scheme on 1 February 2013. Preliminary accreditation is granted. The

installation commissions and applies to convert to full accreditation on the 1

January 2015. Full accreditation is granted and the installation is assigned a

tariff based on the tariffs available on 1 April 2013. The tariff lifetime is

applicable from 1 January 2015.

Converting preliminary accreditation to full accreditation

3.26. In order to realise the benefits of preliminary accreditation, the

installation must have commissioned and the FIT Generator submitted an application

to convert to full accreditation within the validity period. This is done through the

relevant generator account on the Register. The installation will then be assessed

against all eligibility requirements of the FIT scheme. These are covered in Chapter 2

of this guidance document.

59 Article 10(3)(b) FIT Order 60 Article 10(3)(a)FIT Order 61 Article 9(8) FIT Order


41

3.27. Where an installation fails to commission and, or the FIT Generator fails to

submit an application to convert to full accreditation within the validity period, they

will lose their right to receive FIT support at the guaranteed tariff rate. A new

application for ROO-FIT accreditation can be submitted.

Invalidating preliminary accreditation

3.28. The preliminary accreditation and tariff guarantee will be void in the

following situations:

The installation is materially different from the installation which was granted

preliminary accreditation (see below)

Any condition attached to the preliminary accreditation has not been complied

with, or

The information on which the preliminary accreditation was granted was

incorrect in such a way that, had the Authority known the true position,

preliminary accreditation would have been refused

3.29. An installation would be considered to be materially different from the

installation which was granted preliminary accreditation in the following situations62:

It‟s site is different to that stated in the application

It uses a different eligible low-carbon energy source

The installation is either:

o grid connected while the preliminary accreditation application stated

off-grid

o off-grid while the preliminary accreditation application stated grid

connected

It‟s TIC is greater than that stated in the preliminary accreditation application

It‟s TIC is less than that stated in the preliminary accreditation application

such that the installation is subject to a different tariff band.

62 Article 10(4) FIT Order


42

4. Accreditation for FIT

Chapter summary

Explains the ROO-FIT accreditation process. It sets out how to apply for

accreditation, how to appoint a FIT Licensee, the statement of FIT terms, the process

for switching FIT Licensee and FIT payments

4.1. There are two routes of accreditation under the FIT scheme:

Customers using solar PV or wind with a DNC of 50kW or less, or CHP up to a TIC

of 2kW, must use MCS certified equipment installed by an MCS certified installer.

Applicants should approach their electricity supplier for accreditation.

All installations using a FIT-eligible technology with a DNC over 50kW up to a TIC

of 5MW and AD and hydro installations of all capacities should apply to Ofgem for

ROO-FIT accreditation.

4.2. The following guidance covers the ROO-FIT accreditation process only.

What the FIT Order says

4.3. The FIT Order63 states that the Authority must accredit an Eligible

Installation as an accredited FIT installation if it is satisfied that the installation would

receive accreditation under the ROO, were an application to be made.

How to apply for accreditation

4.4. An application for FIT accreditation can be made by the owner of the

installation only. The 'super user' of the generator account set up on our Register

should be a representative of the company that owns and operates the Eligible

Installation.

4.5. An application for ROO-FIT accreditation is made via a generator account

that has been set up on the Register. An application for ROO-FIT accreditation can be

made up to two months prior to commissioning.

4.6. The onus is on the generator to ensure that they are familiar with our

Register and guidance documents in advance of setting up a generator account and

using the functionality of that account. The installation owner will need to comply

with the following steps:

63 Article 5(2) - FIT Order

http://via/


43

Create a generator account via the Register64

Complete an application for accreditation to Ofgem via their account, uploading

or submitting any information as appropriate

Make the relevant declarations in advance of submitting an application65

Once the declarations have been made, submit the

application to us and respond to any queries we may have on the application.

Email notifications will be sent to alert generators when we raise queries on

applications.

4.7. Each application goes through three stages of review. If we require

further information, a query will be raised on the application and the applicant will be

able to view this in their account on the Register. Accreditation will be granted under

delegated Authority once we are satisfied that all eligibility criteria have been met.

4.8. New installations with a DNC over 50kW up to a TIC of 5MW have the one

off choice of applying under the ROO or FIT schemes. Once accreditation has been

granted, the installation cannot switch between schemes at any point. We would

strongly advise generators to be sure as to which scheme they wish to apply under in

advance of making an application to us.

4.9. It is important to stress that the rules of the FIT scheme are very clear

with regards to Eligibility Date (see below). This applies from the later of the

application date and the date on which the installation was commissioned. If an

application was made under a different scheme in the first instance and then the

applicant wished to switch the application to the FIT scheme during the accreditation

process, the earliest the Eligibility Date would be the date of the ROO-FIT application

i.e. not the original application date.

4.10. FIT payments cannot be issued prior to the Eligibility Date (see 4.12) nor

can we backdate accreditation to before an application was first made.

4.11. Community energy installations and school installations will be asked to

submit a unique reference number during the ROO-FIT application process. This will

be provided in a separate communication from the Ofgem FIT Community team and

will be dependent on whether they have met the eligibility requirements. See Feed-in

Tariff: Guidance for community energy and school installations for more information.

The "Eligibility Date"

4.12. If all eligibility criteria have been met, ROO-FIT accreditation is effective

from the "Eligibility Date"66. This is the later of:

64 Renewables & CHP Register https://www.renewablesandchp.ofgem.gov.uk/ 65 An application will not be received by Ofgem until all declarations are agreed and the application

submitted 66 Article 2(1) - FIT Order and Schedule A to Standard Condition 33 of the Electricity Supply Licence


44

the date the application was received by us - i.e. the date that the application is

submitted67 via the Register - if the installation is already commissioned when we

receive the application, or

the date on which the installation is commissioned, if we receive the application

for accreditation prior to the commissioning date;

1 April 2010.

4.13. Exceptions to this rule relate to micro-hydro installations that apply for

FIT accreditation before 1 December 2012. In this case, the Eligibility Date is the

commissioned date. Further where “community energy installations” and “school

installations” which have been pre-registered are subsequently accredited their

Eligibility Dates will be the date on which the application for pre-registration was

received by us. See Feed-in Tariff: Guidance for community energy and school

iInstallations for more information.

4.14. We recommend that a FIT Generator contacts their chosen FIT Licensee

prior to or upon making an application for FIT accreditation. The FIT Licensee will

explain the process for submitting meter readings. If the installation has already

commissioned, or if the application for accreditation is still being processed once the

installation commissions, the FIT Generator should take meter readings from the

Commissioning Date. Once accredited, FIT payments will be back dated to the

Eligibility Date. FIT payments will be made based on these meter readings.

4.15. FIT Generators should note FIT payments will not be made for generation

or export prior to the Eligibility Date. For example, if we receive an application for a

commissioned installation on 17 July 2011 and a meter reading is provided from 1

July 2011, FIT payments cannot be made for generation that occurred prior to 17

July 2011.

Confirming accreditation

4.16. Where we are satisfied that the installation meets all eligibility

requirements, we will confirm accreditation in writing to the FIT Generator. They

should then take this confirmation to their FIT Licensee in order to commence

arrangements to agree a statement of FIT terms.

4.17. The confirmation of accreditation will state:

the FIT accreditation number

the TIC of the installation

the technology type

the Eligibility Date

whether or not the multi-installation threshold applies (PV only)

67 An application is considered submitted once the application has been completed and all relevant declarations have been made by the super user of the generator account.


45

whether or not the energy efficiency requirement has been met (PV only)

whether the installation has been pre-registered as: or (for installations with

declared net capacities in excess of 50kW) been recognised as meeting the

definition of community energy installation or school installation

It will also specify any general and specific conditions attached to the

accreditation.

Accreditation number

4.18. When an installation is granted ROO-FIT accreditation, we will issue a

unique accreditation number. For example, for a wind installation in England, we

would allocate a number such as F WD 00006 EN.

4.19. In this example,

F signifies a FIT code

WD is the ROO-FIT technology code for wind

00006 is the sequential installation number (in other words, this might be 00001

for the first installation of that technology type to be accredited, 00002 for the

second installation of that technology type to be accredited etc), and

EN is the code for England, the country in which the installation is located (SC

would indicate that the installation is located in Scotland and WA in Wales).

Technology codes

4.20. A list of technology codes for all installation types accredited under the

ROO-FIT is included below:

PV – Photovoltaics

WD – Wind

HD – Hydro

AD - Anaerobic digestion

4.21. Preliminary accreditation codes will follow the same structure as stated in

paragraphs 4.19-4.21 above but will begin with a „P‟ rather than an „F‟. Once the

preliminary accreditation is converted to full accreditation, the „P‟ code will be

retained.

Refusal to accredit


46

4.22. We will refuse to accredit an installation where we are not satisfied that it

meets all of the eligibility requirements. We will also refuse to accredit an installation

if the application has been made fraudulently or by a party not entitled to apply for

accreditation.

Appointing a FIT Licensee

4.23. Once successfully accredited, in order to register to receive FIT payments,

the FIT Generator must approach a FIT Licensee. The FIT Licensee will require the

accreditation number in order to register the installation on the CFR. We recommend

that the FIT Generator contact their chosen FIT Licensee prior to or upon making an

application for FIT accreditation to discuss meter readings and FIT payments.

4.24. A list of FIT Licensees is available from our website. Table 4 provides

more information on the types of installations Mandatory and Voluntary Licensees

are required to support.

4.25. A Mandatory FIT Licensee is obliged, when approached, to register and

make FIT payments to:

its own electricity supply customers,

any electricity supply customers of a licensed electricity supplier who is not a

Mandatory FIT Licensee, and

the owner of an Eligible Installation on a Site which does not receive an electricity

supply from the National Grid (i.e. „off grid‟ installations).

4.26. A Mandatory FIT Licensee is also free to register and make FIT payments

to any FIT Generator or nominated recipient it chooses to offer FIT services.

Table 4: Mandatory and voluntary FIT Licensees


47

4.27. A Voluntary FIT Licensee is obliged to register and make FIT payments

when requested by one of its own customers who own an installation with a DNC of

50kW or below.

4.28. A Voluntary FIT Licensee is also free to register and make FIT payments

to any FIT Generator or nominated recipient it chooses to offer FIT services.

4.29. Where an Eligible Installation is installed on a Site that is not receiving a

supply of electricity (i.e. neither the installation nor the Site on which the installation

resides), the FIT Generator may request FIT payments from any FIT Licensee.

Installations that are not grid connected can receive FIT payments from any

Mandatory FIT Licensee and that licensee will be obligated to make payments.

4.30. If the property on which the installation is located receives a supply but

the installation owner is not the electricity supply customer (e.g. rent-a-roof

installations), the FIT Generator may request FIT payments from any FIT Licensee

but no FIT licensee will be obligated to make payments to that FIT Generator.

4.31. Further information on the roles and responsibilities of FIT Licensees is

provided in the Feed-in Tariff supplier guidance68.

Statement of FIT terms

4.32. Once a FIT Licensee has been appointed by the FIT Generator, a

Statement of FIT Terms must be agreed before FIT payments can begin.

4.33. The Statement of FIT terms must be made in writing and include the

Principal Generator Terms69 as follows;

obligations relevant to FIT Payments, including:

(a) Tariff Code;

(b) Confirmation Date;

(c) Eligibility Date and Eligibility Period;

(d) Tariff Date;

(e) the Generation Tariff applying at the Confirmation Date;

(f) the Export Tariff applying at the Confirmation Date (where

applicable) and how to elect to receive Export Payments;

(g) frequency of FIT Payment;

68www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟ 69 Schedule A to Standard Licence Condition 33, Section B (6)



48

(h) data on which calculation of FIT Payments shall be based and the

process by which such data is to be provided;

(i) the consequences of ceasing to be eligible for FIT Payments;

(j) and any other term that may reasonably be considered to

significantly affect the evaluation by the FIT Generator of the

arrangement under which FIT Payments shall be made by the

Mandatory FIT Licensee; and

obligations relevant to the protection of the FIT Generator to which the

Mandatory FIT Licensee shall be obliged to adhere, including:

(a) a description of the Complaints Procedure and a stated duty to

participate in the Complaints Procedure on disputes in relation to

compliance with obligations under the FIT Scheme;

(b) a duty not to discriminate without objective justification in terms of

changing Relevant Electricity Supplier or the prices for supply and

other charges as between FIT Generators and other parties to whom

electricity is supplied by the Mandatory FIT Licensee;

(c) a description of the process of Switching and a stated duty to

participate as required to facilitate the Switching of a FIT Generator;

(d) a duty not to impose any obligations on a FIT Generator which are

additional to, or more onerous than those that are necessary to

enable the Mandatory FIT Licensee to meet its obligations under the

FIT Scheme;

(e) a duty to fulfil obligations under the FIT Scheme efficiently and

expeditiously;

(f) a term setting out the termination rights which permit the FIT

Generator to withdraw from the FIT Scheme or Switch;

(g) a term identifying the risks to a FIT Generator of failure to adhere to

the Statement of FIT Terms, for example following failure to provide

the required data in a timely fashion and as regards suspension and

recoupment of FIT Payments.

4.34. The Principal FIT Licensee Terms shall include:

a term explaining that FIT Payments shall be made by reference to data

in the Central FIT Register;

a term identifying the FIT Generator‟s obligations as regards providing

information, declarations and evidence to the Mandatory FIT Licensee

and the Authority (as well as any consents required for the purposes of

data protection) as required for the administration of the FIT Scheme;


49

a term requiring the FIT Generator to inform the Mandatory FIT Licensee

as soon as reasonably possible in the event there is a change in

ownership of an Accredited FIT Installation;

a term requiring the FIT Generator to inform the Mandatory FIT Licensee

as soon as reasonably possible of Extensions or Reductions to an

Accredited FIT Installation;

a term setting out the circumstances and procedures for changing the

Nominated Recipient on the Central FIT Register;

a term explaining meter ownership and responsibilities, including as

regards access to the property of the FIT Generator if required for

inspection, testing and (in the case of the Export Meter) maintenance

and if appropriate replacement.

In the event the Central FIT Register is amended by the Authority to

correct an error or to reflect any change in circumstances relevant to the

content of the Statement of FIT Terms, for example, the Extension of an

Accredited FIT Installation, the Mandatory FIT Licensee shall revise the

Statement of FIT Terms as required and an amended version shall be

supplied to the FIT Generator.

The Mandatory FIT Licensee shall be required to take due account of

guidance issued by the Authority as regards the content and the form of

the Statement of FIT Terms but can agree terms more favourable to the

FIT Generator if so desired.

4.35. In addition to what is stipulated in the Statement of FIT Terms, the

Mandatory FIT Licensee shall have the following specific duties as regards FIT

Generators in the context of the FIT scheme;

When providing information to a FIT Generator (whether in writing, by

electronic display or orally) in relation to the FIT Scheme, the Mandatory

FIT Licensee shall take all reasonable steps to ensure it:

(a) is complete and accurate;

(b) is capable of being easily understood by the FIT Generator;

(c) does not mislead the FIT Generator; and

(d) is otherwise fair, transparent, appropriate and delivered in a professional

manner both in terms of content and in terms of how it is presented (with more

important information being given appropriate prominence);


50

4.36. To the extent a FIT Generator falls into the definition of Customer,

Domestic Customer or Micro-business Consumer under the Electricity Supply Licence,

participation in the FIT Scheme and involvement in Small-scale Low-carbon

Generation shall have no effect on the rights and obligations resulting from that

status under Sections A and B of the Electricity Supply Licence.

4.37. When making FIT Payments to a FIT Generator or Nominated Recipient,

the Mandatory FIT Licensee shall ensure that the Statement of FIT Terms by

reference to which it does so does not materially discriminate without objective

justification between one group of FIT Generators and any other such group;

4.38. The Mandatory FIT Licensee shall notify FIT Generators and Nominated

Recipients to which it makes FIT Payments as soon as reasonably possible at the

occurrence of an Insolvency Event.

4.39. In addition, the Statement of FIT Terms must include a term:

which states that the information provided by the FIT Generator or Nominated

Recipient can be used for the purpose of administering, reporting and auditing

FITs by the FIT Licensee and Ofgem;

specifically for Eligible Installations installed off-grid, which require them to make

the following declaration:

"I hereby declare that it is my intention to use any and all electricity generated

by my FIT Installation and that I fully understand that any electricity generated

but not so used will not be eligible for FIT payments";

which require FIT Generators to notify the FIT Licensee of any installations,

including any extensions, which may affect the eligibility and capacity calculation

of an Eligible Installation;

requiring the FIT Generator to make a declaration that the information they

provide is complete and accurate;

requiring generation and export meters to be located, where reasonable, in an

accessible location, and for access to be made available to the FIT Licensee or its

contractor for generation and export meter readings; and

requiring a declaration to be made by the generator to confirm that they are not

in receipt of any grants which may make their installation ineligible for the FIT

scheme.

You must inform your FIT licensee if you become the owner/nominated recipient or

are a connected person of 25 or more FIT installations.

Switching FIT Licensee

4.40. If a FIT Generator wishes to switch FIT Licensees, they should approach

the new FIT Licensee. The new FIT Licensee will request the switch from the original


51

FIT Licensee and, if the original FIT Licensee consents, a switch date will be agreed.

Both FIT Licensees must notify Ofgem of the switch and the date on which it is

proposed to take effect Ofgem will then update the central FIT register to record the

switch. Both FIT Licensees and the FIT Generator will be notified once the switch is

complete. The FIT Generator will then agree a new Statement of FIT Terms with the

new FIT Licensee, which Ofgem must be notified in respect of.

4.41. When a FIT Generator decides to switch to a new FIT Licensee, all

installations sharing the same meter must be switched to the same FIT Licensee.

4.42. The new FIT Licensee will be obliged to pay all FIT payments from the

switch date.

4.43. The old FIT licensee will be obliged to pay all FIT payments due to the FIT

Generator up to the switch date.

FIT payments

4.44. FIT payments can be broken down into two main components:

FIT Generation Payment - A fixed payment made by the FIT Licensee to the FIT

Generator or Nominated Recipient for every kWh generated by the Eligible

Installation. The level of the generation tariff is based on the technology, the TIC

and Eligibility Date of the installation70.

FIT Export Payment - A fixed payment made by the FIT Licensee to the FIT

Generator or Nominated Recipient for every kWh exported to the national grid.

4.45. FIT payments are made at the rates set out on our website71. Annually,

Ofgem will publish tariff tables adjusted by the percentage increase or decrease in

the Retail Price Index (RPI) over the 12 month period ending on 31 December of the

previous year. Additionally PV tariff rates will be subject to possible further reduction

from 1 November 2012 (taking account of PV deployment in the preceding months)

as part of the degression mechanism for new PV installations.

4.46. A process of annual degression of generation tariffs is being introduced for

non-PV technologies. The degression mechanism will be administered by Ofgem from

1 December 2012; however the first degression of tariffs will not take place until 1

April 2014.Updated. See Appendix 4 for more information.

4.47. Updated tariff rates will be published on the Ofgem website at least two

months prior to their effective date for new installations and extensions. Similar

70 The FIT Payment Rate Table is available from our website: www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟



52

reductions in tariff rates for generating technologies that do not use solar PV are

intended to take effect from 1 April 2014 onwards and are described in Appendix 4.

The tariff bands are also subject to periodic review by DECC.

Reducing, recouping and withholding FIT Payments

4.48. FIT Payments may be reduced, recouped or withheld by the FIT Licensee

if:

an error has been made by the FIT Licensee, Ofgem or the

FIT Generator as a result of which a FIT Generator or nominated recipient has

received a payment to which it is not entitled, or

Ofgem notifies the relevant FIT Licensee that it has good reason to believe that a

FIT Payment should not have been made.

4.49. All FIT Licensees have an obligation to take all reasonable steps to ensure

all FIT Payments are those to which a FIT Generator or nominated recipient is

entitled.

4.50. If a FIT Licensee believes that in making a FIT Payment to a FIT

Generator or Nominated Recipient it would contravene their obligations, it is required

to notify Ofgem immediately. If Ofgem determines that a FIT Payment could result in

the improper administration of the FIT scheme, it may suspend the relevant Eligible

Installation(s) from the Central FIT Register.

4.51. If instructed to withhold payments, the FIT Licensee will continue to do so

until notified by Ofgem that the suspension has been rescinded, or if instructed by

Ofgem to recover or make a reduced FIT Payment.

4.52. If we discover an error in the Central FIT Register we will:

correct the error; and

if the correction affects the entitlement to FIT payments, we will notify the FIT

Licensee responsible for making the payments.

Suspension and removal from the Central FIT Register

4.53. FIT Generators and Eligible Installations may be suspended from the

Central FIT Register if:

a change is made to an Installation which makes it ineligible

fraud or abuse of the FIT scheme is suspected

conditions included within a Statement of FIT Terms have been breached, or


53

Ofgem have good reason to believe that a FIT Payment should not have been

made

4.54. FIT Licensees must not make any FIT Payments to a FIT Generator or

Nominated Recipient, if Ofgem informs the FIT Licensee that a FIT Generator or

Eligible Installation has been suspended or removed from the Central FIT Register.

Suspending an Eligible Installation should not affect FIT Payments due to a FIT

Generator or Nominated Recipient for other Eligible Installations. If Ofgem suspends

or removes a FIT Generator or Eligible Installation from the Central FIT Register, it

will write to the FIT Licensee and FIT Generator and explain what actions are being

taken and why. If the suspension is lifted, Ofgem will again write to the FIT Licensee

and FIT Generator confirming that the suspension has been lifted.

4.55. FIT Licensees are required to promptly inform Ofgem's Central FIT

Register and Fraud Prevention Manager when they have reason to believe an error

has occurred in relation to a FIT Generator or FIT Installation's eligibility, or that

there is the possibility of fraud or abuse of the FIT scheme. Where possible, this

should be done before the next FIT Payment is due. FIT Licensees should seek to

remedy any error before the next FIT Payment is due. If appropriate, Ofgem may

suspend the relevant entry on the Central FIT Register until the error has been

corrected or any investigation into suspected fraud or abuse has been concluded.


54

Appendices

Index

Appendix Name of Appendix Page Number

1 Glossary 55

2 Solar PV declarations - new installations and

extensions

58

3 Solar PV declarations – change to the FIT

generator or nominated recipient

64

4 Degression mechanism 67

5 Feedback 74


55

Appendix 1 - Glossary

A

AD

Anaerobic Digestion

AEEM

Active Electrical Energy Meters

C

CFR

Central FIT Register

CHP

Combined Heat and Power

Community Organisation

A community interest company; or a community benefit society or co-operative

society, other than such a company or society with more than 50 employees

Community energy installation

An Eligible Installation which is wired to provide electricity to a building which is not

a dwelling; and in relation to which the FIT Generator is a community

D

DCLG

Department for Communities and Local Government

DEC

Display Energy Certificate

DECC

Department of Energy and Climate Change

DNC

Declared Net Capacity

E

Education Provider

The owner of a building used as the premises of a qualifying educational institution;

or a person or body responsible for the management of such an institution

Eligibility Date


56

(c) 1st April 2010

Eligibility period

The maximum period during which a FIT Generator can receive FIT Payments for a

particular Eligible Installation, as set out in the table at Annex 1 of Schedule A to

Standard Condition 33 of the Electricity Supply Licence

Eligible Installation

On a Site, any Installation owned by a FIT Generator capable of producing Small-

scale Low-carbon Generation from the same type of Eligible Low-carbon Energy

Source, the Total Installed Capacity of which does not exceed the specified maximum

Declared Net Capacity

EPBD

Energy Performance of Buildings Directive

EPC

Energy Performance Certificate

F

FIT

Feed-in Tariff

FIT Order

An order made in accordance with sections 43(3) and 41(1) EA08

M

MCS

Microgeneration Certification Scheme operated by Gemserv

Micro installation

Term for an installation with a declared net capacity of 50kW or less

MPAN

Meter Point Administration Number

N

NFFO

Non-Fossil Fuel Obligation

NMO

National Measurement Office

The date as regards a particular Eligible Installation from which eligibility for FIT

Payments commences which, unless the FIT Order provides otherwise, shall be the

later of:

(a) the date, as applicable, of

(i) receipt by the Authority of a FIT Generator‟s written request for ROO-FIT

Accreditation in a form acceptable to the Authority; or

(ii) receipt by a FIT Licensee of a FIT Generator‟s written request for MCS-

certified Registration, accompanied by an MCS Certificate for the installation;

(b) the date on which the installation is Commissioned; or


57

O

OS grid reference

Ordnance survey grid reference

P

PPA

Power Purchase Agreement

Preliminary accreditation

Mechanism for prospective generators, giving increased security with regard to tariff

rates and eligibility prior to commissioning

R

RO

Renewables Obligation

ROO

Renewables Obligation Order

RPI

Retail Price Index

S

School installation

An Eligible Installation which is wired to provide electricity to a building which is used

as the premises of a qualifying educational institution; and in relation to which the

FIT Generator is the Education Provider which owns that building or is responsible for

the management of that institution

Small installations

Term for an installation with a capacity over 50kW up to the Specified Maximum

Capacity of 5MW TIC

SLC

Supplier Licence Conditions

SRO

Scottish Renewables Obligation

T

Tariff Date

In relation to an Eligible Installation for which the method of determining the Tariff

Date is specified in the FIT Order, means the date determined in accordance with the

FIT Order, and in relation to any other Eligible Installation means the Eligibility Date

TIC

Total Installed Capacity


58

Appendix 2 -Solar PV (declarations for

new installations and extensions)

Feed-in Tariff (FIT) solar PV declarations (new installations and extensions)

All applications for accreditation of new solar PV installations (including

extensions to existing installations), with an Eligibility Date on or after 1

April 2012, need to be accompanied by a copy of this document with the

relevant section signed and dated. This will then be used by FITs

licensees/Ofgem as appropriate to determine whether or not (i) the energy

efficiency requirement applies and, if so, has been met; and (ii) the multi-

installation tariff rates should apply.

If your application is for a new PV installation with an Eligibility Date on or

after 1 April 2012, you must sign two of the enclosed declarations; one

declaration from the energy efficiency section and one declaration from the

multi-installation section. Tick one of the boxes in relation to the energy efficiency

declarations and one of the boxes in relation to the multi installation declarations.

Then go on to sign the two relevant declarations. (This includes community

energy or school installations)

However, if your application is for an extension to an existing PV

installation, you must sign one declaration from the energy efficiency

section only. Tick one of the boxes in relation to the energy efficiency declarations

then go on to sign the relevant declaration.

Please read the following information to understand which of the declarations are

relevant to you.


59

Energy Efficiency declaration

Tick one of the following boxes in relation to the energy efficiency requirement and

sign the relevant declaration overleaf:

The energy efficiency requirement does apply and an Energy Performance

Certificate (EPC) rating of level D or above has been achieved (complete

declaration „1‟)

The energy efficiency requirement does not apply because my installation is not

wired to provide electricity to a „relevant building‟72 (complete declaration „2‟)

The energy efficiency requirement does apply and an EPC rating of level D or

above has not been achieved (complete declaration „3‟)

The energy efficiency requirement does apply and an Energy Performance

Certificate (EPC) rating of level G or above has been achieved (complete

declaration „4‟) Community energy and school installations ONLY

Multi-installation declaration

Tick one of the following boxes in relation to the multi-installation requirement and

sign the relevant declaration overleaf:

The „FIT generator‟73 or „nominated recipient‟74 owns or will receive FIT payments

from 25 or more other eligible solar PV installations (complete declaration „4‟)

Neither the FIT generator or nominated recipient owns or will receive FIT

payments from 25 or more other eligible solar PV installations (complete


72 “relevant building” means a roofed construction having walls, for which energy is used to condition the indoor climate, other than such a building for which an energy performance certificate cannot be issued; and a reference to a relevant building includes a reference to part of such a building which has been designed or altered to be used separately; 73 “FIT Generator” means in relation to an Accredited FIT Installation, the person identified as the Owner in the Central FIT Register; and in relation to any other Eligible Installation, the Owner, Whether or not that person is also operating or intending to operate the Eligible Installation 74 ”nominated recipient” means a person appointed by a FIT Generator to receive FIT Payments in respect of an Accredited FIT Installation owned by that FIT Generator and recorded as such on the Central FIT Register


60

Energy Efficiency declarations

(sign one declaration only from declarations 1-4)

Declaration 1

I certify in respect of this application for

accreditation that all of the following are applicable:

a. the eligible PV installation is wired to provide electricity to one or more

relevant buildings;

b. a valid energy performance certificate is enclosed in respect of the building

(or one of the buildings) to which the PV installation is wired to provide electricity;

c. the enclosed energy performance certificate is the most recently issued

energy performance certificate in respect of that building;

d. the enclosed energy performance certificate certifies that the relevant building

to which it relates has been assessed as being level D or above;

Signed _______________________________________

Dated _______________________________________

Declaration 2


accreditation that the eligible PV installation is not wired to provide electricity to any

„relevant building‟1.

I have enclosed evidence supporting this declaration that the eligible PV installation

is not wired to provide electricity to any „relevant building‟.

Signed_______________________________________

Dated________________________________________

Declaration 3

I certify that declarations 1 and 2 above do

not relate to my eligible solar PV installation. An EPC level D or above is required

AND has not been achieved.

I understand that this means I will receive the lower FIT generation tariff.

Signed_______________________________________

Dated________________________________________


61

Declaration 4


accreditation of a community energy/school installation75 on behalf of (name of

community organisation or education provider)

that all of the

following are applicable:

a. the eligible PV community energy/school installation is wired to provide

electricity to one or more relevant buildings1 at the address below;

Address of the building to which the installation is wired:

b. a valid energy performance certificate is enclosed in respect of the building

(or one of the buildings, which is not a dwelling) to which the PV installation is wired

to provide electricity;

c. the enclosed energy performance certificate is the most recently issued

energy performance certificate in respect of that building;

d. the enclosed energy performance certificate certifies that the relevant building

to which it relates has been assessed as being level G or above;

Signed _______________________________________

Dated _______________________________________

75 As defined in the FIT Order


62

Multi-installation declarations

(sign one declaration only from declarations 5-6, unless your application is

for the accreditation of an extension to an existing PV installation in which

case you do not need to sign either of these declarations)

Declaration 5

I ____________________ („the FIT Generator‟) (and76 I ____________________

(„the Nominated Recipient‟*)) certify in respect of this application for accreditation

that either the FIT Generator or the Nominated Recipient (if there is one) are, or

have applied to be, the FIT Generator or Nominated Recipient for 25 or more other

eligible PV installations located on different Sites.

In this certification, references to the „FIT Generator‟ and „Nominated Recipient‟

include all persons who are „connected persons‟77 in relation to them.

Signed FIT generator:_______________________________________

Signed Nominated recipient*:_________________________________

Dated:________________________________________

Please tick the relevant box or boxes to confirm whether the FIT generator and/or

the nominated recipient owns or will receive FIT payments from 25 or more other

eligible solar PV installations:

FIT generator

Nominated recipient*

*where applicable

76 Only to be completed where there is a nominated recipient 77 A „connected person‟ in relation to a FIT generator or a nominated recipient, means any person connected to that person within the meaning of section 1122 of the Corporation Tax Act 2010.


63

Declaration 6

I ____________________ („the FIT Generator‟) (and78 I ____________________

(„the Nominated Recipient‟*)) certify in respect of this application for accreditation

that neither the FIT Generator nor the Nominated Recipient (if there is one) are, or

have applied to be, the FIT Generator or Nominated Recipient for 25 or more other

eligible PV installations located on different Sites.

In this certification, references to the „FIT Generator‟ and „Nominated Recipient‟

include all persons who are „connected persons‟ in relation to them.



Dated:________________________________________

*where applicable

78 Only to be completed where there is a nominated recipient


64

Appendix 3 -Solar PV declaration (change

to the FIT generator or nominated

recipient)

Feed-in Tariff (FIT) solar PV declaration – change to the FIT generator or

nominated recipient

You must sign one of the enclosed declarations where the FIT generator or

nominated recipient changes.

Please read the following information to understand which of the declarations are

relevant to you.

Tick one of the following boxes then go on to sign the relevant declaration:

The new „FIT generator‟79 or „nominated recipient‟80 owns or will receive FIT

payments from 25 or more other eligible solar PV installations (complete


The new FIT generator and or the new nominated recipient does not own or will

not receive FIT payments from 25 or more other eligible solar PV installations

(complete declaration „2‟)

79 “FIT Generator” means (a) in relation to an Accredited FIT Installation, the person identified as the Owner in the Central FIT Register; and (b) in relation to any other Eligible Installation, the Owner, whether or not that person is also operating or intending to operate the Eligible Installation; 80 ”nominated recipient” means a person appointed by a FIT Generator to receive FIT Payments in respect of an accredited FIT Installation owned by that FIT Generator


65

NOTE: Sign one declaration only

Declaration 1

I ____________________ („the new FIT Generator‟) (and81/or I

____________________ („the new Nominated Recipient‟*)) certify in respect of this

notice of change of identity that the new FIT Generator or the new Nominated

Recipient (as applicable) is, or has applied to be, the FIT Generator or Nominated

Recipient for 25 or more other PV Eligible Installations located on different Sites. In this certification, references to the „FIT Generator‟ and „Nominated Recipient‟ include all persons who are „connected persons‟82 in relation to them.



Dated:________________________________________

Please tick the relevant box or boxes to confirm whether the FIT generator and/or

the nominated recipient owns or will receive FIT payments from 25 or more other

eligible solar PV installations:

FIT generator

Nominated recipient*

*where applicable

81 Only to be completed where there is a nominated recipient 82 A „connected person‟ in relation to a FIT generator or a nominated recipient, means any person connected to that person within the meaning of section 1122 of the Corporation Tax Act 2010.


66

Declaration 2

I ____________________ („the new FIT Generator‟) (and83/or I

____________________ („the new Nominated Recipient‟*)) certify in respect of this

notice of change of identity that the new FIT Generator or the new Nominated

Recipient (as applicable) is not, or has not applied to be, the FIT Generator or

Nominated Recipient for 25 or more other PV Eligible Installations located on

different Sites. In this certification, references to the „FIT Generator‟ and „Nominated Recipient‟ include all

persons who are „connected persons‟84 in relation to them.

Signed FIT generator: _________________________________

Signed Nominated recipient*: _________________________________

Dated:________________________________________

*where applicable

83 Only to be completed where there is a nominated recipient


67

Appendix 4 - Degression

This appendix summarises the degression mechanisms in effect for all FIT eligible

technologies (except microCHP) based on deployment of new installation generating

capacity.

Degression Mechanism for Solar PV

A. The degression mechanism for solar PV has been administered by Ofgem

since 1 August 2012. Degression for solar PV tariffs takes place on a

quarterly basis, with generation tariffs changing on the first day of the first

month of each quarter for new installations and extensions with an eligibility

date on or after that date.

B. From 1 December 2012-31 January 2013, payments will be made under the

table published in August 2012 for new installations and extensions with an

eligibility date between 1 November 2012 and 31 January 2013. From 1

February 2013 – 30 April 2013, payments will be made under the table

published in November 2012 for new installations and extensions with an

Eligibility Date between 1 February 2013 – 30 April 2013.

C. Thereafter, tariffs will be published on 1 March 2013 for installations with

Eligibility dates between 1 May 2013 – 30 June 2013. Subsequently, from 1

July 2013 the four degression quarters will be 1 July – 30 September, 1

October – 31 December, 1 January – 31 march, and 1 April – 30 June.

D. Tariffs will be published at least two months before the start of the quarter in

which they will be applicable on the Ofgem website85, and will be based on

deployment of new PV generating capacity in the previous quarter, which will

be published by DECC on their website86.

E. The baseline degression rate will vary depending on deployment, from 3.5%

per quarter; up to a maximum of 28% (see Table 1 for details).

F. Degression will be nil if deployment is below a baseline threshold (see Table 1

for details). Degression can only be skipped for two quarters in a row, so

there will be a minimum of 3.5% degression for every solar PV tariff every 9

months.

G. Deployment statistics will be published on a monthly basis by DECC on their

website and new tariffs for the following quarter will be published by the end

85http://www.ofgem.gov.uk clicking on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟ 86http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fit_degression/fit_degression.aspx

http://www.ofgem.gov.uk/fits

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fit_degression/fit_degression.aspx

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/fit_degression/fit_degression.aspx


68

of the first month of each quarter on Ofgem‟s website based on the

deployment statistics.

H. There are three separate bands in which degression will operate:

(1) a „domestic‟ band covering installations in the 0-4kW and 4-10kW tariff

bands, with degression determined by the total deployment of

installations up to 10kW;

(2) a „small commercial‟ band covering installations in the 10-50kW tariff

band, with degression determined by total deployment of installations

between 10 and 50kW; and

(3) a „large commercial‟ band for installations in the 50–100kW, 100-

150kW, 150-250kW, 250kW-5MW and stand-alone tariff bands, with

degression determined by total deployment of installations larger than

50kW.

I. The degression mechanism will operate independently for each degression

band, with separate deployment thresholds. This means tariffs can degress

at different rates for different installation sizes, with the constraint that the

tariffs for larger installations cannot be higher than the tariffs for smaller

installations - i.e. the tariffs for the larger installations will be pegged to

those for smaller installations in this case. Table 1 shows the degression

thresholds for each of the independent installation groups.

Table 1. Degression thresholds by degression band

Aggregate Declared Net Capacity of all solar photovoltaic installations with a Declared Net Capacity of 10kW or less deployed in the previous quarter

Degression rate

Aggregate Declared Net Capacity of all solar photovoltaic installations with a Declared Net Capacity of more than 10kW but not more than 50kW deployed in the previous quarter

Degression rate

Aggregate Total Installed Capacity of solar photovoltaic installations with a Total Installed Capacity of more than 50kW deployed in previous quarter

Degression rate

Not more than 100MW

nil* Not more than 50MW

nil* Not more than 50MW

Nil*

More than 100MW but not more than 200MW

3.5% More than 50MW but not more than 100MW


3.5%




7.0%




14.0%

More than 300MW 28.0% More than 200MW 28.0% More than 200MW 28.0%

* Degression can only be zero for two quarters in a row. See paragraph 1.4.


69

J. The schedule for publication of the degression tariff table will be published on

the Ofgem website.87

Degression Mechanism for all other eligible technologies

K. A process of annual degression of generation tariffs is being introduced for

non-PV technologies. The degression mechanism will be administered by

Ofgem; however the first degression of tariffs will not take place until 1 April

2014. Annual degression will apply to all hydro, wind and anaerobic digestion

tariffs but will not include microCHP. Generation tariffs will change on 1 April

each year for new installations and extensions with an eligibility date on or

after that date.

L. Furthermore, in exceptional circumstances where there has been markedly

high deployment of new generation capacity during the first six months of a

calendar year tariffs may undergo a contingent degression. This would occur

on 1 October of each year if deployment in the first six months (1 January -

30 June) significantly exceeded expected deployment levels (see paragraph

1.21).

M. Tariffs will be published at least two months before the start of the FIT year,

or in the case of contingent degression by 1 August, that they will be

applicable. They will be based on deployment of new generating capacity in

the previous calendar year, or first 6 months of the current calendar year for

contingent degression, which will be published by DECC on their website. For

example, the generation tariff rates for installations with an eligibility date

between 1 April 2014 and 31 March 2015 inclusive will be published on the

Ofgem website by 1 February 2014 and be based on the level of deployment

between 1 January and 31 December 2013.

N. The expected annual degression rate for all relevant technologies will be

5%,however this will vary depending on the deployed capacity of each

technology in the previous calendar year and can range from 0% up to a

maximum of 20%. (See Tables 2-5 below).

O. Deployment statistics will be published on a monthly basis by DECC, with an

additional aggregated data release covering a full calendar year being

published in January 2014. Tariffs for all relevant technologies with an

eligibility date on or after 1 April of the following FIT year will be determined

using only this aggregated release and will be published by 1 February each

year on Ofgem‟s website.

P. In a similar way to solar PV, the degression mechanism for wind and AD will

operate independently for each degression band, with separate deployment

thresholds. This means that tariffs can degress at different rates for different

installed TICs of installations.

87http://www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟



70

Q. The degression thresholds for new wind installations are provided in Table 2

below:-

Table 2. Degression thresholds for new wind installations

Aggregate Declared Net Capacity of relevant deployment of wind installations with a Declared Net Capacity of up to 50kW in preceding calendar year

Degression rate

Aggregate Total Installed Capacity of relevant deployment of wind installations with a Total Installed Capacity of greater than 50kW but not exceeding 100kW in

preceding calendar year

Degression rate

Aggregate Total Installed Capacity of relevant deployment of wind installations with a Total Installed Capacity of more than 100kW in preceding calendar

year

Degression rate

Not more than 3.3MW

2.5% Not more than 3.3MW

2.5% n/a

More than 3.3MW but not more than 6.5MW

5.0% More than 3.3MW but not more than 6.5MW


5.0%




10.0%

More than 13.1MW 20.0% More than 13.1MW 20.0% More than 73.4MW

20.0%

NB: Where relevant deployment in the preceding calendar year has not exceeded 36.7MW AND has not exceeded 36.7MW in any preceding calendar year, the degression rate for wind installations with a Total Installed Capacity greater than 1.5MW will be nil.

R. Generation tariffs for new wind installations with a TIC of greater than 100kW

cannot be greater than the tariffs paid to installations with a TIC greater than

15kW but not exceeding 100kW. Should this situation occur following a

degression change generation tariffs for those tariff bands for installations

with a TIC of greater than 100kW will be pegged to the generation tariff

payable for the greater than 15kW but not exceeding 100kW tariff band.

S. The degression thresholds for new AD installations are provided in Table 3

below:-


71

Table 3. Degression thresholds for new AD installations

Aggregate Total Installed Capacity of relevant deployment of AD installations with a Total Installed Capacity of 500kW or less in previous

calendar year

Degression rate

Aggregate Total Installed Capacity of relevant deployment of AD installations with a Total Installed Capacity of more

than 500kW in previous calendar year

Degression rate

Not more than 2.3MW


2.5%



5.0%



10.0%

More than 9.0MW 20.0% More than 76.9MW 20.0%

NB: Where relevant deployment in the preceding calendar year has not exceeded 36.7MW AND has not exceeded 36.7MW in any preceding calendar year, the degression rate for wind installations with a Total Installed Capacity greater than 1.5MW is nil.

T. Generation tariffs for new AD installations with a TIC of greater than 500kW

cannot be greater than the tariff rate for those installations with a TIC

greater than 250kW but not exceeding 500kW. Should this situation occur,

generation tariffs for those installations with a TIC greater than 500kW will

be pegged to those tariff rates applicable for installations with a TIC greater

than 250kW but not exceeding 500kW.

U. In addition to linking the tariffs payable to the largest AD installations to

those in the greater than 250 kW but not exceeding 500kW tariff band, there

are further restrictions on tariff values for larger AD installations. Generation

tariffs for new AD installations with a TIC of greater than 500kW cannot

exceed the maximum tariffs specified in Table 5, adjusted by the Retail Price

Index (RPI) over the period beginning on 1 January and ending on 31

December immediately before the commencement of the relevant FIT Year:

Table 4. Maximum tariffs for anaerobic digestion installations with a TIC of

greater than 500kW

Relevant FIT Year

Maximum Generation Tariff (p/kWh)

FIT Year 6 (1 April 2015-31 March 2016)

8.51

FIT Year 7 and subsequent FIT Years

8.06

V. Degression does not apply to microCHP installations. Therefore, generation

tariffs are unchanged each year with the exception of adjustment for RPI.

W. The degression thresholds for new hydro installations are provided in Table 5

below:-


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Table 5. Degression thresholds for new hydro installations

Aggregate Total Installed Capacity of relevant deployment of Hydro Generating Stations in preceding calendar year

Degression rate

Not more than 12.5MW

2.5%

More than 12.5MW but not more than 25MW

5.0%

More than 25MW but not more than 50.1MW

10.0%

More than 50.1MW 20.0%

NB: Where relevant deployment in the preceding calendar year has not exceeded 25MW AND has not exceeded 25MW in any preceding calendar year, the degression rate for hydro installations with a Total Installed Capacity greater than 2MW will be nil.

Contingent (six-monthly) Degression

X. Contingent degression would take place on 1 October and would apply only to

those technologies or tariff bands where deployment between 1 January and

30 June that year had exceeded published thresholds (see Tables 6 - 8). If

this were to take place, new installations and extensions (of the affected

technology/tariff band) with an eligibility date on or after 1 October would be

affected.

Y. In addition to deployment statistics being published by DECC on a monthly

basis an additional aggregated data release covering the first six months of

the calendar year will be published during July. Only this aggregated release

would be used to determine whether contingent degression should take

place. Any tariff changes that would be required would be published on the

Ofgem website no later than 1 August.

Table 6. Mid-year degression thresholds for new hydro installations

Aggregate capacity of relevant half-year deployment of Hydro Generating Stations

Degression rate


5.0%

More than 33.1MW 10.0%


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Table 7. Mid-year degression thresholds for new wind installations

Aggregate capacity of relevant half-year deployment of wind installations with a declared net capacity of 100kW or less

Degression rate

Aggregate capacity of relevant half-year deployment of wind installations with a declared net capacity of more than 100kW

Degression rate



5.0%


Table 8. Mid-year degression thresholds for new anaerobic digestion

installations

Aggregate capacity of relevant half-year deployment of anaerobic digestion installations with a declared net capacity of 500kW or less

Degression rate

Aggregate capacity of relevant half-year deployment of anaerobic digestion installations with a declared net capacity of more than 500kW

Degression rate



5.0%


Z. The schedule for publication of the degression tariff table will be published on

the Ofgem website.88

88http://www.ofgem.gov.uk click on „Sustainability‟, then „Environmental Programmes‟, then Feed-in Tariff Scheme‟



74

Appendix 5 - Feedback

1.1. We welcome comments in relation to the changes we have made to this

document.

1.2. We are making changes to the guidance document for two reasons. Firstly this

guidance has been amended to take account of recent amendments to the Standard

Licence Conditions and the FIT Order, which had the effect of implementing the

outcomes of the FIT Comprehensive Review 2B. These changes include:

updates to the definitions of „Site‟, „Commissioned‟ and „Hydro Generating

Station‟ (see chapter 2)

the process for preliminary accreditation for all ROO-FIT installations (see

chapter 3) and new provisions for community energy installations and school

installations (see chapter 3)

the degression mechanism for non-PV technologies has also been included in

this document (see appendix 4)

1.3. Secondly, some amendments to this guidance have also been undertaken to

provide further information on existing aspects of the scheme. Specifically, the

energy efficiency requirement and multi-installation tariff sections (chapter 3) have

been revised in their entirety to clarify how these requirements work.

1.4. In particular, changes have been made to the following sections:

Eligibility Requirements Paragraph 2.1 – 2.15

Definition of “Commissioned” Paragraph 2.22 – 2.24

Metering Paragraph 2.25

Use of previously accredited equipment Paragraph 2.32 – 2.33

Hydro installations and pumped storage Paragraph 2.36 – 2.40

Installations in receipt of a grant from public funds 2.41 – 2.46

Grants that do not meet the exemptions Paragraph 2.56

Extending an installation which is not FIT accredited Paragraph 2.66 –

2.67

Energy Efficiency Requirements Paragraph 2.72 – 2.93

Community Energy Installations and School Installations Paragraph

2.94 – 2.103

Multi-installation tariff Paragraph 2.104 -2.126

Preliminary Accreditation Chapter 3 (Paragraph 3.1 – 3.29)

The Eligibility Date Paragraph 4.12 – 4.13

Accreditation Number – Technology Codes Paragraph 4.21

Statement of FIT Terms Paragraph 4.32 – 4.39

FIT Payments Paragraph 4.45 – 4.47

Reducing, recouping and withholding FIT Payments Paragraph 4.52

Appendices 1 – 4


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1.5. For these changes, we would like to seek feedback on the following questions:

1. Do you have any comments about the overall tone and content of the guidance?

2. Was the guidance easy to read and understand, could it have been better

written?

3. Was enough detail provided in the guidance document? If not, where is more

detail needed, and why?

4. Do you have any other comments on the changes that we intend to make in this

Draft Guidance?

1.6. Our duties and functions under the scheme are prescribed by legislation. As

such, please bear in mind when responding that we are not in a position to change

our approach to those matters.

1.7. Any responses should be made in writing by Monday 11 February 2013. They

should be sent to Andrew MacFaul, Consultation Co-ordinator, at Ofgem, 9 Millbank,

London, SW1P 3GE or by email to [email protected]


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